NEW YORK, April 23, 2026, 17:10 EDT
Advanced Micro Devices touched $319.71 Thursday, nearly hitting Stifel’s $320 target, but then slipped. By 4:55 p.m. ET, shares were at $305.33, up 0.6% for the session, putting the chipmaker’s market cap near $501 billion.
This is coming to a head now, with AMD set to post first-quarter numbers on May 5. Investors want to see whether all the recent AI customer buzz is delivering actual revenue needed to justify the stock’s higher valuation. Earlier this week, Morgan Stanley flagged “agentic AI” — a type of system that can plan and execute tasks independently — as a potential catalyst, estimating it could push an extra $32.5 billion to $60 billion into the data-center CPU market by 2030. That would extend spending past just GPUs, the main chips for AI model training. Advanced Micro Devices, Inc.
Stifel’s Ruben Roy bumped his AMD price target to $320 from $280, sticking with a Buy. Roy called out “above expectations” AI compute demand in both accelerated and general-purpose systems. The firm highlighted commitments from Meta and OpenAI, a rare surge in CPU demand for what’s typically a slower period, and looked ahead to the upcoming MI450 AI chips and Helios rack systems. Supply, though, is getting tighter, the firm noted. TheStreet
AMD heads into this test with a business that’s on firmer ground than last year. In February, the company posted a record $10.3 billion in fourth-quarter revenue, with data-center sales jumping 39% to $5.4 billion. Looking ahead, AMD projected first-quarter revenue of around $9.8 billion. Back then, Chief Executive Lisa Su said AMD was going into 2026 carrying “strong momentum” in EPYC and Ryzen processors, plus its data-center AI line. Advanced Micro Devices, Inc.
Much of the optimism centers on Meta. Back in February, Reuters said AMD had struck a deal to provide the Facebook parent with as much as $60 billion in AI chips over five years—six gigawatts of capacity, custom CPUs in the mix. That’s a major win for AMD, giving it another top-tier hyperscaler customer as cloud companies scramble to secure compute.
The prior agreement with OpenAI plays a big role here too. Back in October, Reuters put out word that this deal would span hundreds of thousands of AI chips over multiple years, starting in the second half of 2026. Potential annual revenue? Tens of billions. DA Davidson’s Gil Luria labeled the Meta arrangement “significant validation” for AMD’s GPU tech. Reuters
Nvidia holds its spot as the top AI chip supplier. Still, there’s no missing the speed at which buyers are branching out. Intel drove the point home on Thursday, projecting second-quarter revenue ahead of Wall Street’s view and citing surging appetite for AI server processors as a key growth driver.
“The CPU (is) having a renaissance here,” Intel CFO Dave Zinsner told Reuters on Thursday. For AMD, that’s the angle investors are betting on—going beyond AI accelerators to grab a larger share of general-purpose server chips powering AI workloads. Reuters
The trade’s not straightforward. Stifel flagged mounting supply pressures, while AMD’s deals with Meta and OpenAI both featured warrants—potentially letting those clients snap up as much as 10% of AMD. Unusual, and it’s got analysts questioning whether AMD can drive demand without handing out equity. “Delivering solutions at this scale is a new test” for the chipmaker, Matt Britzman at Hargreaves Lansdown commented in February. Investing.com
ASML and TSMC each lifted their outlooks this month, underscoring continued heavy investment in AI infrastructure by hyperscalers. The positive tone has boosted AMD, Nvidia, and other semiconductor stocks. But with AMD trading above $300 and closing in on a $320 target flagged by one analyst, what the company says in its May 5 update could outweigh any new target price right now.
