Advanced Micro Devices (AMD) has received a vote of confidence from Truist Securities, which upgraded the chipmaker to Buy from Hold and lifted its price target to $213 per share from $173.
The new target implies more than 30% upside from Monday’s closing price, even after AMD shares have already gained over 35% in 2025.
Shares rose more than 2% in premarket trading on Tuesday following the upgrade.
Of the 53 analysts covering the stock, 36 now rate it a Buy or Strong Buy, according to data from LSEG.
Constructive industry feedback boosts outlook
Truist analyst William Stein tied the rating change to a more constructive view from industry contacts, citing growing enthusiasm among hyperscale customers for AMD’s technology.
According to Stein, these customers are increasingly working with AMD in a “partnership manner” rather than viewing the company as merely a “price check” against rival Nvidia.
“Over the last month or so, contacts have increasingly noted that hyperscalers are working with AMD in a partnership manner, expressing true interest in deploying AMD at scale,” Stein wrote.
The shift represents a significant change in perception.
Until 2018, AMD held less than 1% of the data centre CPU market, leaving Intel largely unchallenged.
As Intel stumbled in manufacturing processes and product design, however, AMD seized the opportunity with its “Rome” processors, eventually capturing around 21% of the market.
Truist highlighted this history as a parallel to the current dynamics in the data centre GPU market, where Nvidia has long maintained a commanding lead due to its CUDA software ecosystem.
Rising role in data centre and AI markets
For years, many industry observers believed Nvidia’s dominance in GPUs left little room for a sustainable second supplier.
However, Truist now sees a meaningful opportunity for AMD to establish itself in the space.
The analysts expect AMD to reach a structural 10% share of the data centre GPU market over time, a notable shift in its long-term prospects.
While they do not anticipate Nvidia repeating Intel’s missteps in CPUs, they acknowledge that hyperscaler partnerships could create room for AMD to play a more durable role.
The firm pointed to AMD’s MI355 chip, launched in late June, as a potential growth driver in the coming quarters, particularly as AI demand continues to expand.
This development has led Truist to raise its earnings estimates, setting 2027 EPS at $7.89.
Strong year-to-date performance and positive sentiment
AMD’s robust year-to-date performance underscores investor optimism.
The stock has gained more than 35% in 2025, reflecting both broader enthusiasm for semiconductor companies and confidence in AMD’s ability to expand its footprint in high-growth markets.
The upgrade from Truist reinforces a broader bullish sentiment.
Analysts note that hyperscaler customers — the largest cloud computing operators — are increasingly engaging with AMD on a deeper, more collaborative level.
Such relationships, if sustained, could support AMD’s transition from a challenger to an established second supplier in the data centre and AI markets.
While Nvidia remains the dominant force, Truist’s revised stance signals that industry dynamics may be shifting, providing AMD with fresh opportunities to scale.
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