AMD Stock Soars Nearly 8% After Bullish Analyst Upgrade and Growing AI Confidence
June 16, 2025 – USA — Advanced Micro Devices Inc. (NASDAQ: AMD) surged nearly 8% on Monday, closing at $125.73 in one of its strongest single-day performances in recent weeks. The rally was driven by a bullish analyst upgrade and renewed optimism surrounding AMD’s AI and GPU businesses, signaling a potential shift in investor sentiment.
Piper Sandler Boosts AMD Price Target to $140
The catalyst behind the surge was a report from Piper Sandler, which upgraded AMD’s stock and raised its price target to $140. Analyst Harsh Kumar highlighted accelerating demand in AMD’s AI accelerator segment and stable growth in its client processor division as key drivers behind the bullish outlook.
AMD Shows Signs of Reversing Downtrend
Despite being down more than 24% year-to-date, Monday’s rally suggests that market sentiment toward AMD could be turning. The stock jumped from a previous close of $116.16, breaking past short-term resistance levels and providing a much-needed boost to investors.
While the average 12-month price target from 41 Wall Street analysts sits at $130.84, reflecting a modest upside, some analysts remain far more optimistic — with top projections reaching $200.
Valuation Models Suggest Further Upside
According to valuation platform GuruFocus, AMD’s fair market value is pegged at $165.24, which would represent a potential upside of over 31% from current levels. The model takes into account historical earnings multiples, revenue growth, and future performance expectations.
AI, GPUs, and Data Centers Drive Long-Term Potential
AMD continues to expand in the highly competitive semiconductor space, going head-to-head with Intel in CPUs and Nvidia in the booming AI GPU market. The company’s upcoming product launches and innovations in data centers, gaming, and high-performance computing are seen as critical growth catalysts.
While short-term volatility remains a factor in the tech sector, AMD’s long-term track record remains strong:
- 116% gain over the past five years
- Over 26,000% return since inception
Market Watchers Eye Momentum Shift
Investors are closely watching whether Monday’s gains mark the start of a sustained uptrend. With growing interest in AI, a favorable analyst outlook, and upcoming developments, AMD could be positioning itself for its next leg of growth.
