Advanced Micro Devices NASDAQ:AMD shares climbed more than 5% on Tuesday after several Wall Street firms raised their price targets, reflecting growing confidence in the chipmaker's artificial intelligence and data center businesses.
KeyBanc increased its price target on AMD to street high of $725 from $530 while maintaining an Overweight rating. The firm said additional server processor capacity could support stronger shipment growth this year and in 2027. KeyBanc also expects AMD's next-generation AI accelerators and Helios platform to contribute to revenue growth in the coming quarters.
Bank of America raised its target price on AMD to $620 from $550, while TD Cowen increased its forecast to $675. The revised estimates come as analysts continue to assess demand for AI computing infrastructure and advanced semiconductor products.
AMD also appeared to benefit from renewed investor interest in semiconductor stocks. Recent market data indicated hedge funds increased purchases of U.S. chipmakers after a period of selling, suggesting investors may be positioning for continued growth in the sector.