NEW YORK, May 26, 2026, 19:01 (ET)
Advanced Micro Devices shares surged 7.78% to $503.89 Tuesday, setting a new 52-week high at $506.96. The chipmaker kept climbing as AI infrastructure spending fueled a sharp rally. The stock has gained more than 50% in the last 30 days and is up 135% for the year, FinanceCharts data showed.
Traders were watching this because it wasn’t just a jump in a niche sector. After U.S. exchanges reopened from the Memorial Day holiday, the S&P 500 and Nasdaq closed at all-time highs. The Philadelphia Semiconductor Index, SOX, which tracks chip stocks, also ended at a record, up 5.5%.
OneQode said in a same-day announcement that it will use AMD Instinct GPUs as part of a push to build out AI infrastructure across several regions. The company also plans to rely on AMD Helios rack-scale systems for the rollout. The news gave AMD investors another sign of demand for the chipmaker’s AI hardware. “High-performance compute” and an open software ecosystem are needed for heavy AI workloads, said Negin Oliver, AMD corporate VP for AI business development. PR Newswire
AMD shares are moving on a shift in how investors are valuing its data-center unit. The company delivered first-quarter revenue of $10.3 billion on May 5, up 38% from last year, with $5.8 billion coming from data centers, up 57%. AMD projected second-quarter revenue at roughly $11.2 billion, plus or minus $300 million. CEO Lisa Su said data centers are now the “primary driver” of both revenue and profit growth, and expects server growth to “accelerate meaningfully” as the supply ramps up. Advanced Micro Devices, Inc.
Micron lit up chip stocks Tuesday, jumping 19% after UBS hiked its price target to $1,625 from $535. Qualcomm and Marvell moved higher, too. Intel, AMD’s main CPU competitor, gained 3.0%. Nvidia, which leads in AI chips, edged down after hours.
AMD’s bull story isn’t just about going after Nvidia’s graphics-chip market anymore. “AMD story is no longer just about having a GPU pipeline to challenge Nvidia,” Matt Britzman, senior equity analyst at Hargreaves Lansdown, told Reuters earlier this month. He called it “a broader compute opportunity” as CPUs and GPUs are both in play. Reuters said at least 20 brokerages boosted their AMD targets after its outlook, citing LSEG data, with Evercore ISI’s target coming in highest at $579. Reuters
But expectations may be running ahead of results. Benzinga lists AMD at a price-to-earnings ratio of 155.8. That’s a share price much higher than profit, with a consensus price target of $411.03, which is under where AMD closed on Tuesday. Delays in MI450 or Helios rollouts, supply getting tighter, or cloud orders slowing might turn the $500 level into a crowded trade instead of a clear move higher.
More AI readouts are set for later this week as Marvell and Dell report. Investors watching both to see if demand for AI hardware still looks strong or if AMD’s rally starts to stand alone.
AMD shares outperformed the index Tuesday, with the tape giving the chipmaker some leeway for now. The focus turns to whether customer orders will turn into revenue soon, or if investors start to think the run is overdone.
