AMD’s stock jumped 9%. Here’s what could be driving the optimism.

Advanced Micro Devices (AMD) experienced a 9.3% stock surge, likely driven by its recent “Advancing AI” event in San Jose, where it unveiled new AI-focused products, including the Instinct MI325X chip (shipping Q4 2024), MI350 series (2025), and MI400 series (2026) with the “Helios” rack-scale AI platform. Analysts, such as Piper Sandler, raised price targets (from $125 to $140), citing AMD’s strengthened position in the AI chip market. Positive feedback from industry players like Hugging Face’s Jeff Boudier on the MI355X GPUs further fueled enthusiasm. Strong financials, including a 33% revenue increase, 57% data center revenue growth, and 92% free cash flow rise, also contributed. However, risks like U.S. chip export restrictions potentially cutting $800 million in revenue and competition from Nvidia temper the optimism.