AMD Stock Rises as Analyst Reaffirms Buy Rating on AI Demand
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose more than 2% during afternoon trading to $542.10 following a reaffirmed buy rating and a $675 price target from TD Cowen. Analyst Joshua Buchalter noted increasing adoption of agentic artificial intelligence and production inference workloads, where central processing units from Advanced Micro Devices coordinate sequential decisions, tool calls, and overall workflows.
The gain comes as chip stocks attempt to recover from a two-week downturn triggered by rising macroeconomic concerns. Higher borrowing costs and Federal Reserve commentary focused on inflation control have recently weighed on capital-intensive technology companies. Despite recent pressure, Advanced Micro Devices remains up 142% since the start of the year, although shares trade about 16.9% below their 52-week peak of $649.42 set earlier in October 2026.
Market participants are now focusing on broader industry spending signals to determine whether chip demand can sustain higher valuations. Key upcoming events include Nvidia's European conference in Berlin and quarterly earnings results from Meta Platforms, both of which could provide further insight into corporate artificial intelligence capital expenditures.
Key points
- TD Cowen reaffirmed a buy rating and a $675 price target on Advanced Micro Devices, Inc. (NASDAQ:AMD), citing strong demand for artificial intelligence processors.
- Analyst Joshua Buchalter highlighted CPU adoption in agentic AI and production inference workloads for coordinating decisions and tool calls.
- The stock rose over 2% to $542.10, aiding a chip sector rebound following a two-week decline caused by rising borrowing costs.
- Advanced Micro Devices has gained 142% year-to-date, though it remains 16.9% below its 52-week high of $649.42.
- Investors are evaluating upcoming spending signals from Nvidia's Berlin conference and Meta Platforms' quarterly results.
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Why did AMD stock go up today?
AMD stock rose after TD Cowen reaffirmed a buy rating and a $675 price target, pointing to steady demand for processors used in agentic artificial intelligence and production inference workloads.
What is TD Cowen's price target for AMD?
TD Cowen reaffirmed a $675 price target for AMD, citing the company's central processing units playing a key role in AI workflow coordination and sequential decision-making.
How has AMD stock performed in 2026?
AMD is up 142% year-to-date, though shares remain about 16.9% below their 52-week high of $649.42 from October 2026.