AMD Shares Jump 7.7% on AI Demand, Bernstein Lifts Target to $265
Advanced Micro Devices shares jumped 7.74% on April 16 to close at $278.26, trading 65% above average as AI-driven demand surged. Taiwan Semiconductor reported Q1 sales growth of 41% and raised Q2 guidance 32%, while Bernstein lifted AMD’s price target to $265, forecasting 50% EPYC sales growth.
1. Stock Surge on AI Demand
On April 16, AMD shares surged 7.74% to close at $278.26, with trading volume 65% above its 30-day average, driven by robust orders for AI-focused processors across data center and cloud markets.
2. TSMC's Blowout Quarter
Taiwan Semiconductor Manufacturing reported Q1 sales growth of 41% year-over-year and issued Q2 revenue guidance up 32%, underscoring strong semiconductor demand that directly benefits AMD’s chip production and supply chain.
3. Analyst Upgrade from Bernstein
Bernstein raised its price target on AMD to $265 from $235, citing an anticipated 50% increase in EPYC server CPU sales for 2026, fueled by AI infrastructure deployments and a significant Meta contract.
4. Valuation and Growth Outlook
Despite tripling in value over the past year, AMD trades at a forward P/E of 39x, reflecting continued market confidence in its growth trajectory amid accelerating AI chip demand.