AMD Stock Surges on AI Optimism and Product Innovation
Advanced Micro Devices (AMD) has seen a sharp rise in its stock price following a series of announcements centered on artificial intelligence (AI) advancements. On June 16, 2025, AMD shares jumped 9.5%, closing at $127.70. This made it the top performer on both the S&P 500 and Nasdaq 100 for the day.
New AI Chips and Server Architecture
The rally came after AMD’s “Advancing AI” event, where the company unveiled its upcoming MI400 AI chip series and the new Helios server architecture, both expected in 2026. These moves are seen as a direct challenge to Nvidia’s dominance in the AI hardware space.
Analyst Reactions and Price Targets
Analysts responded positively to the event. Piper Sandler raised its price target for AMD from $125 to $140, citing strong AI momentum, while Bank of America set a target of $130, pointing to possible cloud partnerships with companies like Amazon Web Services.
Strong Data Center Growth
AMD’s data center revenue nearly doubled in 2024, reaching $12.6 billion. With recent acquisitions like ZT Systems and a growing focus on AI infrastructure, analysts believe AMD is well-positioned for continued growth in the coming years.
Outlook
Investors are now watching closely to see how these strategic bets play out as AMD gains ground in one of tech’s most competitive markets.