D.A. Davidson Sees Big CPU Upside, Sends AMD Stock 10% Higher
D.A. Davidson upgraded AMD, citing a structurally expanding CPU market driven by agentic AI workloads. That upgrade lifted premarket trading by over 10% as AMD positions for sustained data center demand, potential pricing power and margin expansion.
1. Analyst Upgrade on CPU Opportunity
D.A. Davidson raised AMD to a buy, highlighting a larger-than-expected CPU addressable market fueled by agentic AI workloads that rely heavily on central processors. The firm argues that CPU demand is shifting structurally higher, giving AMD a clearer role in upcoming data center expansions.
2. Market Reaction and Margin Outlook
The upgrade triggered a more than 10% gain in premarket trading as investors priced in sustained demand outpacing supply. Stronger CPU positioning could allow AMD to raise prices, supporting gross margin improvement over the next several quarters.
3. ARK Investment Shift
Cathie Wood’s ARK fund offloaded its red-hot AMD stake while reallocating capital into Amazon, underscoring divergent views among growth-focused investors on semiconductor valuations versus cloud infrastructure exposure.