AMD shares soared more than 12% on Friday, despite no direct company news, as Wall Street analysts responded to Intel's unexpectedly strong CPU performance and guidance for the second quarter [1]. Analysts believe Intel's results signal significant upside for other major CPU makers, including AMD, as CPUs are becoming increasingly vital in the AI era, shifting compute needs beyond graphics processing units like those produced by Nvidia [1].
D.A. Davidson analyst Gil Luria upgraded AMD to 'buy' from 'neutral,' raising his 2026 revenue and gross profit margin estimates and increasing his price target to $375, which implies a 22% upside from Thursday's close [1]. The AMD year-to-date chart shows significant appreciation, reflecting the recent rally [1].
Intel's new guidance projects double-digit server CPU unit growth in 2026, a notable increase from its prior expectation of only slight growth six months ago, according to Citi analyst Atif Malik, who also upgraded Intel stock to 'buy' from 'neutral' [1]. Wall Street analysts see CPU makers and data center gear providers, with AMD at the forefront, benefiting as a group from this positive momentum [1].
Roth's Suji Desilva stated that Intel's target multiple is now being aligned with AI infrastructure peers such as AMD, MRVL, CRDO, and ALAB, all of which are rated 'buy' [1]. However, Barclays' Tom O'Malley raised the possibility that Intel could lose market share to AMD, noting a downside case for Intel based on greater share loss to AMD and other factors [1]. Intel traded around $81 early Friday [1].
CONCLUSION
AMD's stock rally was driven by positive sentiment around the CPU market following Intel's strong guidance, with analysts upgrading both AMD and Intel and raising price targets. The market sees CPUs as increasingly critical in the AI infrastructure boom, positioning AMD and its peers for potential upside. However, some analysts caution that Intel could lose market share to AMD, highlighting ongoing competitive dynamics.