Advanced Micro Devices (AMD) enjoyed a remarkable surge on Friday, witnessing a nearly 14% increase to approximately $350 per share. This rally was primarily ignited by Intel’s exceptional earnings report for the first quarter, which not only impressed investors but also sent ripples through the entire semiconductor sector.
Intel’s robust Q1 earnings report did more than boost its own stock; it revitalized interest in chipmakers like AMD, positioning them as key beneficiaries of the growing demand for central processing units (CPUs). Analyst Gil Luria from D.A. Davidson took note of this momentum, upgrading AMD from a Neutral to a Buy rating and significantly raising the price target from $220 to $375. This impressive upgrade reflects the analysts’ belief in AMD’s potential to capitalize on a shifting market.
Intel’s impressive performance can be attributed to soaring sales of its data center chips, a crucial area as demand for CPUs escalates with the transition towards agentic AI workloads. These advanced applications require powerful processing capabilities, making AMD an attractive choice for investors looking to leverage this shift.
“We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise,” Luria remarked. He emphasized that the significant structural shift towards agentic AI is creating an unprecedented demand for server CPUs.
The implications of this demand are substantial: Luria suggested that AMD could increase prices across its CPU product range, enhancing margins and bolstering earnings power moving forward.
Strategic Positioning: AMD versus Intel
Although Intel garnered attention with its substantial 24% stock jump, analysts see greater long-term potential for AMD. Jefferies, which recently upgraded its outlook for Intel, expressed more enthusiasm for AMD, maintaining a Buy rating with a price target of $300 while asserting a Hold rating for Intel.
“INTC noted double-digit growth in server unit sales with momentum extending into 2027, but we believe AMD will see even better growth,” the Jefferies analysts stated, pointing out the anticipated Venice chips slated for release in late 2026 or early 2027 as a key driver for AMD’s future success.
Conversely, Morgan Stanley’s analyst Joseph Moore provided a more tempered perspective, holding Equal Weight ratings on both stocks. He argued that Intel’s earnings beat could be more a product of supply constraints rather than a significant market share gain at AMD’s expense.
Moore highlighted that the CPU market’s dynamics are likely to remain active for some time, as the balance between supply and demand appears skewed.
The Broader Semiconductor Landscape
AMD was not alone in its triumph, with shares of Arm Holdings (ARM) also soaring by nearly 15% on the same day. Arm’s recent announcement to develop its own CPUs suggests intensifying competition among leading chip manufacturers.
The PHLX Semiconductor Index mirrored this enthusiasm, rising 4.5% on the day, marking an impressive streak of 18 consecutive sessions of gains. This index has skyrocketed by 43% in 2026 alone, and has more than doubled, growing by over 140% in the past year.
As AMD’s stock reached a session high of $352.99 on Friday—the highest it has been in over a year—investors are eagerly anticipating the company’s upcoming Q1 earnings report scheduled for May 5, accompanied by a conference call at 5:00 p.m. ET.
