AMD Shares Are Climbing — AI Memory Demand Fuels Analyst Optimism

This article first appeared on GuruFocus.

Advanced Micro Devices (NASDAQ:AMD) shares climbed about 5% on Friday as analysts grew more upbeat about the company’s earnings power.

Wall Street sees booming AI-related demand for high-performance computing and data-center memory as a key growth driver. New Ryzen and EPYC processors, along with refreshed AI accelerators, are strengthening AMD’s product mix.

Tighter graphics-memory supply has supported higher GPU prices, helping margins, analysts say. Several brokerages have fine-tuned price targets and lifted estimates in recent sessions.

Trading activity and technical signals point to strong buy sentiment, while AMD’s market cap tops hundreds of billions, reflecting investor optimism.

Many analysts expect memory revenue to remain strong into early 2026 as data centers shift from hard drives to faster SSDs, supporting long-term demand.

Analysts and investors will watch upcoming earnings, product rollouts and chip supply dynamics for signs that AI demand is sustainable into 2026.