Advanced Micro Devices (AMD) stock rose Friday, extending its rally to a ninth straight session, as investors reacted to weakness at Intel (INTC) and signs that the rival chipmaker may struggle for longer than expected. Shares were up nearly 3% late in the session, putting AMD on track for its longest winning streak in many years.
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Intel shares fell after its CEO, Lip-Bu Tan, said the company’s turnaround will take several years. The comment came during Intel’s Q4 earnings update and signaled that a quick recovery is unlikely. That message pressured Intel stock but lifted sentiment around AMD.
Intel also said supply limits are stopping it from meeting strong demand for its chips. With Intel facing both supply issues and a long turnaround, investors see AMD as having more time to push into Intel’s core markets.
Wall Street Sees More CPU Share Gains for AMD
JPMorgan analyst Harlan Sur said Intel still faces the risk of losing more CPU share, especially in servers, as it struggles to meet demand. He said demand for server CPUs is rising, driven in part by AI-related workloads, but Intel is unable to fully serve that demand because of limits in its wafer supply. That shortfall, he noted, creates an opening for AMD to keep winning share.
Sur pointed to AMD’s strong server CPU lineup and steady product rollout, which he said continues to resonate with customers while Intel works through supply and capacity issues.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 24 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $284.93, representing a potential 8.61% upside for the shares.
