Advanced Micro Devices (AMD) stock rallied on Tuesday alongside news that demand for agentic AI is growing. With this growth in demand for agentic AI comes a focus on CPUs, as they are more effective with this type of AI than GPUs. This has put extra attention on AMD as the company’s EPYC server CPUs are efficient at handling agentic AI.
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In fact, AMD has seen preference for its EPYC CPUs rise in AI data centers. The latest reports indicate that AMD’s server CPUs now make up more than 41% of server CPU revenue share. While rival CPU maker Intel (INTC) still dominates this space, today’s news shows that AMD is making significant progress in winning over data center operators to its side.
AMD has also been making strides in the agentic AI space. The company recently updated its GAIA AI platform to allow for the generation of AI agents. AI agents are a form of agentic AI that largely relies on CPU power over GPU power. Introducing this feature expands AMD’s offerings and could help it appeal to AI developers.
AMD Stock Movement Today
AMD stock was up 2.7% on Tuesday, extending an 18.37% year-to-date rally. The stock has also climbed 159.03% over the past 12 months.
With today’s news came muted trading of AMD stock, as some 15 million shares changed hands. That’s roughly half of the stock’s three-month average daily trading volume.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 20 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $284.42, representing a potential 12.14% upside for the shares.
