Worry for Jensen Huang's Nvidia? AMD stock skyrockets - what did CEO Lisa Su say that has investors cheering

Time of India

3 hours ago

After trailing behind Nvidia throughout most of the AI chip competition, AMD may finally be entering the limelight, and Wall Street is paying attention, as per a report.
AMD Finally Steps Into the Spotlight
The shares of the company have risen more than 11% over the last five days to close at $129.58 on Tuesday as investors respond to a series of positive news from the company, as per The Street report. From a successful product announcement to ambitious market estimates and solid revenues, AMD seems to be reaching a pivotal turning point, according to the report.
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AMD's New AI Chips Take Center Stage
At AMD's "Advancing AI" developer conference in San Jose on June 12, AMD's CEO Lisa Su unveiled the company's new MI350 and future MI400 series of AI chips, which are a direct competition for Nvidia's Blackwell chips, according to The Street report.
According to Bloomberg, Su highlighted that the MI350 series is faster than Nvidia's Blackwell.
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While she previously had forecasted $500 billion in AI accelerators market revenue by 2028, but now, she predicts that it will exceed that number, as reported by The Street.
Su said, 'People used to think that $500 billion was very large number,' adding, 'Now it seems well within grasp,' as quoted in the report.
AMD Rallies After Months in Nvidia's Shadow
However, it has been a bumpy ride for AMD in the past few months as the stock fell close to 20% early in 2025 due to the tariff-related pullback, a curb on chip sales overseas and concerns about whether demand for high-priced AI GPUs was sustainable after DeepSeek's launch, as reported by The Street.
But then, AMD posted a stronger-than-expected first-quarter results with adjusted earnings of 96 cents per share on $7.44 billion in revenue, beating Wall Street's expectations of 94 cents and $7.13 billion, according to the report.
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Su had told analysts at that time, 'While we face some headwinds from the dynamic macro and regulatory environments...we believe they are more than offset by the powerful tailwinds from our leadership product portfolio,' quoted The Street.
Later that month, AMD also revealed a partnership with Saudi Arabian AI startup Humain to help build a $10 billion AI-computing infrastructure over five years, a project that could also increase AMD's role in the AI-chip market, as reported by The Street.
Cathie Wood Bets Big on AMD
All these moves have built investor confidence, for instance, Cathie Wood, chief of Ark Investment Management, increased her AMD stake last week, buying 247,753 shares worth around $32.1 million on June 20 and 37,377 shares valued at $4.8 million on June 17, according to the report.
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Analysts Turn Bullish on AMD
While Melius Research has also upgraded
AMD stock
to buy from hold with a price target of $175, which is an increase from $110, as per The Street report. The analysts have pointed out in a research report that "many things have changed for the better since the beginning of the year," and they expect AMD's GPU sales to ramp up from 2026 to 2028, given a "sustainable surge in inferencing," according to the report. Melius also predicted that AMD's earnings per share could exceed $8 within the next two years, as per The Street.
FAQs
What's causing AMD stock to go up right now?
Investors are reacting to strong earnings, new AI chip launches, and positive market forecasts from AMD leadership, as per The Street report.
What do analysts think about AMD's future?
Melius Research just upgraded AMD and raised its price target to $175. The analysts expect AMD's AI chip sales to grow sharply from 2026, as per The Street report.
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