AMD Stock Soars 14% Following Intel’s Strong Earnings and D.A. Davidson Upgrade

Table of Contents Shares of Advanced Micro Devices (AMD) delivered impressive gains Friday, surging nearly 14% to approximately $350 following Intel’s exceptional first-quarter earnings performance that energized the semiconductor sector. Advanced Micro Devices, Inc., AMD Intel’s quarterly results proved beneficial beyond its own stock price. The report signaled to investors that central processing unit demand is accelerating rapidly, positioning AMD as a prime beneficiary of this trend. Gil Luria, analyst at D.A. Davidson, elevated his rating on AMD from Neutral to Buy while substantially increasing his price target from $220 to $375—a notable adjustment in a single research note. Luria cited Intel’s earnings as the catalyst for his revised outlook. Intel delivered first-quarter revenue and profit figures that substantially exceeded Wall Street forecasts, with data center chip revenue showing particular strength. The underlying catalyst? Agentic AI workloads. As artificial intelligence applications transition from training large language models to executing inference tasks—where models perform practical, real-world functions—CPUs have emerged as critical infrastructure components. “We view Intel’s results as a precursor for a huge step-up for AMD’s CPU franchise,” Luria stated. He noted that the fundamental shift toward agentic AI is generating server CPU demand at unprecedented levels. With demand projected to exceed supply availability, Luria also suggested AMD has opportunities to increase pricing throughout its CPU portfolio, potentially expanding profit margins and strengthening earnings capability. While Intel captured attention Friday with a 24% stock surge on its results, multiple analysts believe AMD may offer superior long-term investment potential. Jefferies, which raised its Intel price target Thursday evening, indicated its strongest enthusiasm remains with AMD. The firm maintains a Buy rating and $300 price target on AMD, while keeping Intel at a Hold rating. “INTC noted double-digit server unit growth with momentum extending into 2027, but AMD likely sees even better growth,” the Jefferies research team noted. They also highlighted AMD’s forthcoming Venice chips, anticipated in late 2026 or early 2027, as an important catalyst. Morgan Stanley analyst Joseph Moore provided a more balanced perspective. Maintaining Equal Weight ratings on both companies, Moore suggested Intel’s earnings outperformance stemmed from supply limitations—not from Intel capturing market share from AMD. Moore indicated the CPU “music is likely to keep playing for a while, as there is no indication that supply catches up to demand.” AMD wasn’t the only chip stock posting substantial gains. Arm Holdings (ARM) also climbed nearly 15% Friday. Arm recently revealed intentions to manufacture its own CPU, intensifying competition with both Intel and AMD. The PHLX Semiconductor Index advanced 4.5% during the session, marking its 18th consecutive positive trading day. The benchmark has climbed 43% in 2026 and more than 140% over the trailing 12 months. AMD shares reached an intraday peak of $352.99 Friday, marking the stock’s highest level in over a year. The 52-week trading range extends from $91.87 to $352.99. Advanced Micro Devices is scheduled to announce its first-quarter financial results on May 5, with an investor conference call commencing at 5:00 p.m. ET the same day.