AMD jumps 17% as AI-driven data center growth fuels earnings beat and analyst upgrades

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Advanced Micro Devices (NASDAQ:AMD) surged astir 17% successful premarket trading connected Wednesday aft the chipmaker delivered quarterly results and guardant guidance that exceeded Wall Street expectations, driven mostly by booming request from the artificial quality sector.

Investor enthusiasm accelerated aft main enforcement Lisa Su highlighted beardown momentum successful AMD’s server and information halfway operations during the company’s net call.

Su said the information halfway conception had go the company’s largest root of gross and projected server gross maturation of much than 70% twelvemonth implicit twelvemonth during the existent quarter.

Meta concern and AI request fortify maturation outlook

The AMD main besides pointed to the company’s caller concern with Meta to grow AI computing capacity, adding that merchandise shipments tied to the statement are expected to statesman successful the 2nd fractional of the year.

AMD antecedently signed a $60 cardinal spot proviso statement with the proprietor of Instagram.

Su besides outlined a stronger semipermanent outlook for the broader CPU market, forecasting yearly maturation of 35% and a full addressable marketplace exceeding $120 cardinal by 2030.

According to analysts astatine Jefferies, this upgraded forecast has go a large catalyst down the crisp rally successful AMD shares. The revised projection was substantially supra the company’s erstwhile estimation from November, which projected 18% yearly growth.

“While galore stocks person been climbing strictly connected vibes lately the institution deserves important recognition for a cardinal communicative that progressively is looking real,” wrote Stacy Rasgon of Bernstein successful a probe note.

Rasgon upgraded AMD to Outperform and lifted his terms people to $525 per share. Analysts astatine Goldman Sachs besides raised their proposal connected the stock.

AMD strengthens presumption successful AI and server spot markets

AMD remains 1 of the starring semiconductor companies successful the United States, designing processors and graphics chips utilized successful idiosyncratic computers, gaming systems, information centers and artificial quality applications.

The institution is wide viewed arsenic the largest rival to Nvidia successful the marketplace for high-performance graphics processors powering AI workloads.

Although AMD inactive trails Nvidia successful marketplace share, its banal show has importantly outpaced its rival successful 2026. AMD shares are up 65.9% twelvemonth to date, compared with a 5.4% summation for Nvidia and a 6.1% emergence for the S&P 500.