AMD stock rises on price target bumps, Microsoft deal

AMD (AMD) banal roseate much than 3% connected Monday, aft Rosenblatt and UBS raised their terms targets connected the banal and Microsoft (MSFT) announced it volition usage the company's upcoming Helios rackscale AI level to powerfulness its Azure workloads.

The terms people changes and Microsoft quality travel conscionable days earlier AMD hosts its Advancing AI league successful San Francisco, Calif. The lawsuit volition diagnostic a keynote by CEO Lisa Su, who is apt to supply updates connected the company's merchandise roadmap and goals.

Rosenblatt raised its terms people connected AMD banal to $655 from $490, portion UBS accrued its people to $700 from $670. The banal has an 82.4% Buy standing among analysts, according to Bloomberg data. The remaining 17.6% person clasp ratings connected the stock.

The Microsoft woody is an important measurement for AMD arsenic it prepares to vessel its Helios level to customers, including Meta (META) and Oracle (ORCL), aboriginal this year.

Helios combines the company's Instinct MI455X graphics processing portion (GPU), Epyc Venice cardinal processing portion (CPU), its Pensando information processing portion (DPU), and ROCm bundle into a racksale strategy designed to rival Nvidia's (NVDA) fashionable Grace Blackwell and Vera Rubin platforms.

Like Nvidia's offerings, Helios features 72 GPUs wired unneurotic to pass with each other. Racks tin besides beryllium tied unneurotic to make monolithic GPU clusters for heavy-duty AI computing.

But Nvidia isn't sitting idly by, portion AMD catches up. The institution has already announced its next-generation Kyber rack, which volition treble the fig of GPUs successful a rack to 144.

AMD banal has climbed 139% year-to-date and 226% implicit the past 12 months arsenic unreality computing companies person expanded their usage of CPUs successful their information centers to assistance powerfulness agentic AI workloads.

That's been a boon for AMD's bottommost line. Data halfway gross has accrued from $6.5 cardinal successful 2023 to $16.6 cardinal successful 2025, and analysts estimation that it volition ascent adjacent further to $31.2 cardinal this year. 

That should assistance offset immoderate of the softness successful the company's Gaming segment, which is expected to spot gross diminution 25% this year. Client gross is expected to emergence 11%.