AMD Stock Soars on AI Momentum—Price Forecast, Analyst Targets & What Investors Should Know

Advanced Micro Devices (NASDAQ: AMD) lit up the semiconductor sector this week, powering to a two-month high after a flurry of bullish analyst calls and fresh evidence that its AI-focused GPU roadmap is gaining traction. Shares touched $129.21 in Thursday trading, up roughly 11 % since Monday’s open and more than 65 % year-to-date, outperforming both the Philadelphia Semiconductor Index and rival Nvidia during the same span. Fueling the rally was Piper Sandler’s decision to lift its price target to $150 from $135 following AMD’s Advancing AI keynote, where the company detailed its MI325X accelerator and confirmed a 2026 launch window for the MI400 series built on the next-generation “Next” architecture. The brokerage sees a “clear multiyear runway” for data-center GPU revenue, a view echoed by Evercore ISI and Barclays, both of which reiterated Overweight ratings earlier in June. Investors are betting that AMD can grab meaningful share of the booming AI training market currently dominated by Nvidia. Management projects its Instinct platform to exceed $4 billion in sales this year, up from $2.3 billion in 2024, while Wall Street consensus now models total company revenue to climb 24 % to $31.8 billion in 2025. The momentum has prompted longer-term speculation: a recent Motley Fool breakdown calculates that if AMD hits $20 billion in annual data-center GPU sales by 2030, earnings per share could triple, implying a five-year share price north of $250 even on conservative multiples. Short-term technicals also favor the bulls. Wednesday’s close pushed AMD decisively above its 50-day moving average, while options flow shows elevated call buying at the $135 and $140 strikes for July expiry, signaling traders are positioning for a continued breakout. According to 24/7 Wall St., the average 12-month target among 45 analysts now sits at $142, with the high estimate at $185. Risks remain. Intel’s Gaudi3 rollout later this summer could pressure pricing, and supply-chain chatter suggests TSMC’s 3-nanometer capacity is already oversubscribed. Additionally, any cooling in enterprise AI spending or a broader tech sell-off would likely expose AMD’s above-market valuation near 48 times forward earnings. For now, however, momentum, improving fundamentals, and a widening slate of AI design wins have AMD stock firmly in the market’s crosshairs. Traders eye the company’s Q2 earnings on July 30 as the next catalyst; a beat-and-raise could cement the chipmaker’s status as 2025’s breakout semiconductor play.