Advanced Micro Devices ( (AMD) ) has risen by 11.62%. Read on to learn why.
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Advanced Micro Devices shares climbed 11.62% over the past week as investors continued to bet on the chipmaker’s central role in the booming AI infrastructure market. AMD has emerged as the only credible large-scale alternative to Nvidia in high-end data center GPUs, and its latest quarter underscored that momentum, with more than $4.3 billion in data center revenue out of $9.2 billion total. Wall Street remains broadly bullish, with a Strong Buy consensus and average price targets implying further double-digit upside, even as some commentators warn that AI-related capital spending is entering a more mature phase.
The rally was also supported by fresh signs of commercial traction and strategic positioning. Riot Platforms announced AMD as the first major long-term tenant for its new 200-acre high-power data center campus in Texas, committing initially to 25 megawatts of capacity in a deal that could grow to $1 billion in revenue for Riot if extended. Separately, AMD executives addressed market chatter around potential GPU price increases tied to higher memory (DRAM) costs, emphasizing long-standing supply agreements that help manage both availability and economics, which reassured investors about the company’s ability to sustain its GPU business.
At the same time, there is growing debate about how much of AMD’s AI opportunity is already priced into the stock. Analysts note that the industry is nearing the peak of a “Phase 1” AI capex cycle driven by urgency and overbuilding, with the next phase likely to feature slower, more measured growth and less generous valuations across AI names. While AMD is well positioned to expand its data center presence and benefit from diversified AI demand, some market observers caution that elevated multiples leave the shares vulnerable to any cooling in growth expectations, making disciplined entry points and clear exit strategies increasingly important for investors.