Shares of Advanced Micro Devices (AMD) surged nearly 14% on Friday after D.A. Davidson analyst Gil Luria upgraded the stock from neutral to buy, raising the price target to $375 per share. Luria’s bullish outlook follows Intel’s strong earnings report, which highlighted robust demand for data center chips—an indicator of the increasing need for high-speed CPUs to support AI applications. He emphasized that Intel’s results suggest a significant opportunity for AMD’s CPU business amid the ongoing shift towards AI workloads.

This upgrade is particularly relevant as it signals a potential uptick in AMD’s earnings and margins, driven by increased demand that could allow the company to raise prices on its high-performance CPUs. The semiconductor sector is poised for growth, and AMD’s positioning in the AI market could enhance its competitive edge.

Investors should keep an eye on AMD’s upcoming first-quarter financial report on May 5, where management is expected to elaborate on the company’s AI-driven growth strategy and performance outlook.

Source: fool.com