AMD (AMD) stock shot up 18% in pre-market trading on Wednesday, May 6, 2026. This sudden jump happened because the company reported massive profits that surprised everyone on Wall Street. Even though some market signals suggest the price is rising too fast, investors are ignoring the warnings and buying as much as they can.
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The chipmaker reported that it brought in $10.25 billion during the first quarter. This number was roughly $360 million higher than what experts had predicted. A huge part of this success came from the data center business, where sales grew by 57% compared to last year. These results show that the demand for AI chips is still growing at a record pace.
AMD Defies Traditional Market Logic
Many professional traders use a tool called the RSI to see if a stock is being bought too quickly. For most of April, this tool has shown that AMD is in a “danger zone” where the price usually drops. However, the stock has ignored these rules entirely. Since early April, the price has surged 87%. Instead of falling, the stock keeps hitting new highs because buyers refuse to stop.
AMD Targets a Monster Second Quarter
The company is not planning to slow down anytime soon. Management expects to bring in about $11.2 billion in the next three months. This goal is much higher than the $10.5 billion that many analysts were expecting. While some firms are starting to wonder if the rally can last, the current momentum suggests that AI demand is more powerful than any technical warning.
Is AMD Stock a Buy, Hold, or Sell?
Turning to the Street, Advanced Micro Devices has a Strong Buy consensus, based on 34 analysts’ ratings. This rating is based on 26 Buys and eight Holds. The average 12-month AMD stock price target is $431.74, which implies 21.5% upside potential from the current price.
