AMD (AMD) spearheaded a rally for semiconductor companies on Wednesday, as the world’s hunger for AI technology hit a new peak. AMD stock climbed nearly 3% in pre-market trading as investors rushed to buy the hardware that powers modern artificial intelligence.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
This surge follows a brief lull in the market, proving that the demand for high-powered chips is stronger than ever. With the industry moving at high speed, this recovery shows that the AI boom is only getting more intense.
AMD Leads the Hardware Charge
AMD is currently seeing its technology become a top choice for the building of advanced AI systems. This massive demand has caused the share price to soar as more investors bet on its long-term success. This growth mirrors the performance of Intel (INTC), which saw its stock price rise 4% this morning. Intel has been a standout winner lately, with its value growing more than five times over the last year alone.
Qualcomm Recovers from a Sharp Drop
Qualcomm shares (QCOM) also found new strength today, rising 4% after a difficult session on Tuesday. The phone company is currently moving into the data-center market to find new ways to grow while the market for phones remains slow. This shift is being helped by the company’s CEO, Cristiano Amon, who is currently traveling with President Donald Trump on a trip to China. This mission aims to help American tech firms sell more of their products in one of the largest markets in the world.
UBS Maintains a Strong Conviction in AI
Financial experts are telling the market that the long-term future for these chip makers remains very bright. Mark Haefele, a leader at UBS Global Wealth Management (UBS), noted that the demand for this technology is only getting stronger. He wrote, “We maintain our conviction in the long-term upside in the AI investment theme, with global tech companies recently reporting strong AI demand, accelerating cloud growth, and higher capex.” This confidence from top analysts is helping to fuel the current rally.
Is AMD Stock a Buy, Hold, or Sell?
Turning to the Street, Advanced Micro Devices has a Strong Buy consensus, based on 35 analysts’ ratings. This rating is based on 27 Buys and eight Holds. The average 12-month AMD stock price target is $449.21, which implies 0.2% upside potential from the current price.
