Advanced Micro Devices NASDAQ:AMD gained more than 5% on Thursday after Susquehanna raised its price target on the chipmaker, citing stronger prospects for its data center processor business ahead of next week's quarterly earnings report.
Susquehanna increased its price target on AMD to $500 from $450 while maintaining a Positive rating. The firm said growing demand for data center products, particularly EPYC server processors and Instinct AI accelerators, could support improved financial results and guidance.
The brokerage expects AMD's MI350 AI chips to continue expanding in the first half of 2026, with a larger revenue contribution anticipated later in the year following the launch of its MI450 platform. Susquehanna also pointed to AMD's recently disclosed 2-gigawatt AI infrastructure agreement with Anthropic and broader customer adoption beyond early partners such as OpenAI and Meta Platforms (META).
AMD is scheduled to report second-quarter results on Aug. 4. Analysts expect earnings of $1.61 per share on revenue of about $11.3 billion. Susquehanna also highlighted continued strength in demand for AMD's EPYC server CPUs, noting that increasing AI workloads are expected to drive long-term growth in the data center market.