AMD Stock Jumps 6% as Upgrade, New GPU and Quantum Deal Hit

TLDR

• AMD stock rose about 6% Thursday and is up 23% this week through Wednesday’s close.
• William Blair upgraded AMD to Outperform from Market Perform.
• AMD launched the Instinct MI450X GPU and announced a PsiQuantum partnership.
• Bank of America raised its AMD price target to $700 from $650.
• Nvidia stock fell about 5% after CEO Jensen Huang resigned.

Advanced Micro Devices (AMD) stock rose about 6% on Thursday, with a pile of good news landing in a single session. The gain builds on a 23% climb through Wednesday’s close.

Advanced Micro Devices, Inc., AMD

The backdrop is Nvidia (NVDA), where CEO Jensen Huang resigned. Nvidia stock fell about 5% on the news.

Broadcom (AVGO) also gained about 6%. It is up 18% this week through Wednesday.

William Blair analyst Sebastien Naji upgraded AMD to Outperform from Market Perform. He pointed to Nvidia’s leadership issues and Intel’s supply challenges.

A New GPU Joins the Lineup

AMD introduced the Instinct MI450X, a new addition to its MI400 Series for data center and AI work. It carries 288 GB of HBM4 memory.

The chip matches the MI455X on core compute, memory bandwidth, and scale-up and scale-out connectivity. The difference is the amount of memory.

AMD says customers asked for an AI GPU with less HBM4. That makes the MI450X a cheaper pick for buyers who don’t need the extra capacity.

The company also said the quick launch shows how fast it can tailor the MI400 line. Andrew Dieckmann, who runs its Data Center GPU business, said the series brings “leadership performance” and more options for customers.

AMD also shared new numbers for the MI455X. It hit 21,333 tokens per second per GPU on DeepSeek-R1 in an MLPerf Inference Offline setup.

AMD says that is 30% higher throughput than the latest data from Nvidia’s Vera Rubin. The comparison arrived on a day Nvidia stock was falling.

AMD also announced an expanded partnership with PsiQuantum to build hardware for quantum computing. It will make an equity investment in the company as well.

What Analysts Are Saying

Bank of America analyst Vivek Arya raised his AMD price target to $700 from $650. He kept a Buy rating and pointed to the strength of the CPU business.

The new target implies about 21% upside from Thursday’s levels. The Wall Street consensus rating is Strong Buy, based on 29 Buy and three Hold ratings over the past three months.

The average price target is $652.18, which implies about 13% upside. Pepperstone analyst Chris Weston said the market is separating a problem for Nvidia from a problem for AI.

He added that price action shows investors see the situation as a risk specific to Nvidia. Early Thursday, AMD was up 1.9% and Broadcom was up 5.2%, even as Huang’s exit dented the prior session’s tech rally.

By the afternoon, AMD’s gain had grown to about 6%.

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