AMD shares rise 10% after analysts say they expect a 'snapback' for chipmaker
Shares of Advanced Micro Devices rose nearly 10% on Monday after analysts at Piper Sandler lifted their price target on the stock on optimism about the chipmaker's latest product announcement.
The analysts said they see a snapback for AMD's graphics-processing units (GPUs) in the fourth quarter. That's when they expect the chipmaker to be through the bulk of the $800 million in charges that AMD said it would incur as a result of a new U.S. license requirement that applies to exports of semiconductors to China and other countries.
Last week, AMD revealed its next-generation AI chips, the Instinct MI400 series. Notably, the company unveiled a full-server rack called Helios that enables thousands of the chips to be tied together. That chip system is expected to be important for artificial intelligence customers like cloud companies and developers of large language models.
AMD CEO Lisa Su showed the products on stage at an event in San Jose, California, alongside OpenAI CEO Sam Altman, who said they sounded "totally crazy."
"Overall, we are enthused with the product launches at the AMD event this week, specifically the Helios rack, which we think is pivotal for AMD Instinct growth," the analysts wrote in their note.
Piper Sandler raised its price target for AMD's share price from $125 to $140.
The stock jumped past $127 on Monday and is at its highest since Jan. 6, before President Donald Trump announced sweeping new tariffs or AMD warned of the chip control charges.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
38 minutes ago
- Yahoo
Is AMD Stock a Buy, Sell, or Hold on Untether AI Acquisition?
Over the past decade, Advanced Micro Devices (AMD) has thrived, rewriting its legacy in the fiercely competitive semiconductor arena. The company has evolved from an industry underdog to a headline name in innovation, particularly in artificial intelligence (AI). Adding another feather to its cap, in early June, AMD announced it has brought onboard the team behind Untether AI. These engineers, known for building AI inference chips that outperform rivals in both speed and energy efficiency, will now strengthen AMD's skills in enterprise data centers and edge computing. Robotaxis, Powell and Other Key Things to Watch this Week Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts Is Quantum Computing (QUBT) Stock a Buy on This Bold Technological Breakthrough? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Far more than just a hiring spree, the strategic agreement brings in deep expertise in AI hardware, software, compiler engineering, kernel development, and system-on-chip design, all critical in the fast-moving AI race. The move is no isolated bet. Just weeks ago, AMD acquired silicon photonics firm Enosemi to scale its co-packaging capabilities, and days later, it snapped up open-source software player Brium. So, let us now examine whether the latest move strengthens AMD's position as a compelling investment opportunity. Advanced Micro Devices (AMD), headquartered in Santa Clara, California, holds a market cap of $205.6 billion and leads the charge in high-performance computing. The company delivers a powerful mix of CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software capabilities to build cutting-edge platforms that support cloud infrastructure, edge computing, and end-user systems. Over the past three months, AMD has been on an upward march, posting gains of 22.5%. In just the last five trading days, the stock has leapt another 4.7%, a sharp spike that points to fresh tailwinds lifting the company higher. On May 6, Advanced Micro Devices lifted the curtain on its Q1 2025 earnings, and its performance beat analyst expectations. The chipmaker reported revenue of $7.44 billion, rising 35.9% year over year and exceeding Wall Street's forecast of $7.12 billion. At the heart of this impressive run was the data center segment, which delivered $3.7 billion in revenue, marking a 57% surge from the same period last year. Other divisions joined the rally too. The client and gaming business generated $2.9 billion combined. While the client unit saw a dramatic upswing of 68%, bringing in $2.3 billion, the gaming segment faced continued headwinds, falling 30% to $647 million. Still, the gains elsewhere helped AMD widen its gross margin to 50%, a solid jump from 47% a year ago, aided by a richer product mix and stronger data center sales. Non-GAAP net income climbed 54.6% to reach $1.6 billion, reinforcing the company's strong operational grip. Adjusted EPS came in at $0.96, up 54.8% from the prior year and again beating the Street's projection of $0.93. But despite the bullish results, AMD struck a cautious tone. Management has flagged export restrictions on A.I. chips to China, estimating a $700 million revenue hit this quarter and a total impact of $1.5 billion for the fiscal year. Even so, AMD forecast Q2 revenue at $7.4 billion. While analysts see EPS dipping 30% year over year to $0.35 in Q2, they expect it to rise 20.6% to $3.16 for the full year and jump 54.1% to $4.87 in fiscal 2026. AMD stands firm in the market, demonstrating steady confidence as it secures a 'Moderate Buy' consensus. Out of 42 analysts closely following the stock, 28 give it an enthusiastic 'Strong Buy' rating, one leans toward a 'Moderate Buy,' and 13 adopt a cautious 'Hold' stance. The average price target of $133.32 represents potential upside of 5.6%. Meanwhile, the Street-High target of $200 hints at a 58.7% climb from current levels. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
WIRED
an hour ago
- WIRED
Elon Musk's Lawyers Claim He 'Does Not Use a Computer'
Caroline Haskins Kate Knibbs Will Knight Jun 23, 2025 1:24 PM The claim appeared in a court filing related to Elon Musk's ongoing lawsuit against Sam Altman and OpenAI. The Tesla and xAI owner has posted about his laptop numerous times in the last year. Photograph:Elon Musk's lawyers claimed that he 'does not use a computer' in a Sunday court filing related to his lawsuit against Sam Altman and OpenAI. However, Musk has posted pictures or referred to his laptop on X several times in recent months, and public evidence suggests that he owns and appears to use at least one computer. Musk and his artificial intelligence startup xAI sued OpenAI in February 2024, alleging the company committed breach of contract by abandoning its founding agreement to develop AI 'for the benefit of humanity,' choosing instead 'to maximize profits for Microsoft.' The Sunday court filing was submitted in opposition to a Friday filing from OpenAI, which accused Musk and xAI of failing to fully comply with the discovery process. OpenAI alleges that Musk's counsel does not plan to collect any documents from him. In this weekend's filing, Musk's lawyers claim that they told OpenAI on June 14 that they were 'conducting searches of Mr. Musk's mobile phone, having searched his emails, and that Mr. Musk does not use a computer.' Musk and xAI Corp's lawyers did not immediately respond to requests for comment. In the filing, Musk's legal team disputed claims that it was resisting discovery efforts. Multiple employees at X tell WIRED that while Musk primarily works from his mobile phone, he has occasionally been seen using a laptop. Musk has also made public statements about computers he appears to own in the recent past. In December 2024, Musk posted a picture of a laptop on X with a caption that begins, 'This is a pic of my laptop.' The post, made in reply to a 15-minute stream of a game from the Diablo video game series, claims that he was 'testing Starlink streaming while in flight,' suggesting that he was possibly using the laptop for professional purposes. Musk has streamed more than 10 times since August 2024, showing what appears to be the desktop layout of the game, usually saying that he is doing so to test Starlink's streaming capacity. Musk has also made more recent references to what appears to be the same laptop. In May 2025, Musk said on X that he is 'Still using my ancient PC laptop with the @DOGE sticker made long ago by a fan.' The post was in reply to a user who asked what his gaming set-up is and whether it's a 'full gaming PC.' That user had been replying to a different 15-minute stream of Diablo. The picture Musk posted in reply shows a black laptop with AERO branding, a style of computer that typically runs Windows and is popular with gamers, with a sticker of a dollar bill edited in homage to the memecoin 'Doge.' (The memecoin later appears to have inspired the name of the so-called Department of Government Efficiency.) Musk says in the same post that the laptop is three years old, and that the sticker was given to him by a man in Germany. Earlier, on February 25, 2024, Musk claimed in a post on X that he had 'just bought a new PC laptop,' but said that he was unable to use it without creating a Microsoft account, which he didn't want to do. He implied that he did not want to allow the company's AI to get access to his computer. (Windows 11, the most recent Microsoft operating system, has several AI-powered features for certain devices. At least one of these features that was announced in early 2024 learns from a user's activity history.) The next day, he replied to an X post from Microsoft chairman and CEO Satya Nadella reiterating his complaint from the previous day. 'Satya, I don't mean to be a pest, but please allow people setting up a new Windows PC to skip creating a Microsoft account,' Musk said. In November 2022, during his tumultuous takeover of Twitter (now known as X), the mogul posted a picture of what appears to be a computer screen showing the interface of Mastodon, a rival federated social network. Musk later deleted the post. In a response to a question about his choice of computer in July 2021, Musk wrote on X that he uses a 'PC desktop with latest graphics card, although I have a Mac too. Gigabyte laptop.' Musk's office in the Eisenhower Executive Office Building appeared to contain a gaming PC. A photo of the PC is partially visible in a March video stream of the All-In Podcast, during which venture capitalist and podcast cohost David Friedberg showed photos he took during a visit to Washington, DC. OpenAI declined to comment, and referred WIRED to its own filings related to the ongoing lawsuit.
Forbes
2 hours ago
- Forbes
Sam Altman Makes Big Tech Predictions As Of June
OpenAI CEO Sam Altman The corn is growing, the fireworks tents are popping up, and everybody's getting ready for the Fourth of July. Over at OpenAI, the man in charge, Sam Altman, has penned an essay for us June 10, about updated predictions for the near-term future. Part of it actually involves a predicted timeline for AI robotics and humanoid robots, which I've been writing about quite a bit. Sure enough, Altman suggests that this type of technology is on its way soon. 'We are past the event horizon; the takeoff has started. Humanity is close to building digital superintelligence, and at least so far it's much less weird than it seems like it should be.' Contending that much of the 'least likely' work on intelligent robots and agents is done, Altman gives the example of his own baby. 'ChatGPT is already more powerful than any human who has ever lived,' he notes. 'Hundreds of millions of people rely on it every day and for increasingly important tasks; a small new capability can create a hugely positive impact; a small misalignment multiplied by hundreds of millions of people can cause a great deal of negative impact.' Speaking of 'self-reinforcing loops,' Altman posits the expansion of automation on a swift timeline. 'The economic value creation has started a flywheel of compounding infrastructure buildout to run these increasingly-powerful AI systems,' he writes. 'And robots that can build other robots (and in some sense, datacenters that can build other datacenters) aren't that far off.' A Panoply of Wonders What is the likely human response to that? If you read through the middle part of Altman's essay, and you have to admit this man has a front-row seat to this innovation shift, you get a sense of how quickly we tend to acclimate ourselves to AI, or at least try. He talks about how, in a singularity scenario, 'wonder becomes routine,' amazement gives way to a hunger for more. Here's a bit that I thought narrated this idea very well: 'Already we live with incredible digital intelligence, and after some initial shock, most of us are pretty used to it. Very quickly we go from being amazed that AI can generate a beautifully-written paragraph to wondering when it can generate a beautifully-written novel; or from being amazed that it can make live-saving medical diagnoses to wondering when it can develop the cures; or from being amazed it can create a small computer program to wondering when it can create an entire new company. This is how the singularity goes: wonders become routine, and then table stakes.' And everything keeps going… The Lamplighter and the Farmer What is the human cost of having smart robots around? In a prior essay months ago, Altman talked about job displacement, using the example of the old lamplighter – someone whose job would be to put fire to the streetlamps used in the times before municipal electricity. 'Many of the jobs we do today would have looked like trifling wastes of time to people a few hundred years ago, but nobody is looking back at the past, wishing they were a lamplighter. If a lamplighter could see the world today, he would think the prosperity all around him was unimaginable. And if we could fast-forward a hundred years from today, the prosperity all around us would feel just as unimaginable.' In this current essay, he has a little bit of a different take. Altman changes his protagonist to a subsistence farmer who watches people have ever more frivolous jobs – less physical work, less concrete roles, more creative noodling, and more flexibility. 'A subsistence farmer from a thousand years ago would look at what many of us do and say we have fake jobs, and think that we are just playing games to entertain ourselves since we have plenty of food and unimaginable luxuries,' Altman writes. 'I hope we will look at the jobs a thousand years in the future and think they are very fake jobs, and I have no doubt they will feel incredibly important and satisfying to the people doing them.' Well said. That's going to be a feature of this industrial revolution, I would assume. Cures and Problem-Solving Come Cheap Referencing the advances and efficiencies over the last few years, Altman suggests that things which are important to us as societies will suddenly be within our reach. Positing the cost of intelligence being the cost of electricity, he lays out this way of thinking: 'The rate of technological progress will keep accelerating, and it will continue to be the case that people are capable of adapting to almost anything. There will be very hard parts like whole classes of jobs going away, but on the other hand the world will be getting so much richer so quickly that we'll be able to seriously entertain new policy ideas we never could before. We probably won't adopt a new social contract all at once, but when we look back in a few decades, the gradual changes will have amounted to something big.' Challenges and Barriers As for headwinds facing our journey into the future, Altman does identify two of them, although you could argue these are more related to human interactions than technical challenges. One is what he calls an 'alignment problem,' where the technology may fail to center on doing things that humans want, in the ways that they want them done. I go back to my colleague Stephen Wolfram's descriptions of AI as an attention mechanism that has to be directed through the right avenues of thought to gel with human intentions. The other one that Altman notices has to do with democratizing the tech, making sure it doesn't just become the jurisdiction of billion-dollar tech firms and their billionaire leaders. In other words, the two major problems that Altman brings up have to do with access and human control of AI. Some Reactions Over at one of my favorite podcasts, AI Daily Brief, podcaster Nathaniel Whittemore gives us an example of a pretty scathing skeptical reaction from Jeffrey Miller, apparently at to wit: 'Democracy means absolutely nothing, and people don't get to vote on whether we want the singularity, which probably leads straight to human extinction. Do you support running a global referendum on whether we allow you guys to persist in trying to summon the superintelligent demons in the hope that they'll play nice with us and destroy our current civilization gently?' More Tech Heads Join the Fray In going over responses to Altman's essay, Whittemore also references some of the words of Ethan Mollick, who I also like to cover as an MIT-connected person with a lot to say about AI, characterizing Mollick as saying: 'One thing you could definitely say about Sam and Dario is that they are making very bold, very testable predictions. We will know whether they are right or wrong in a remarkably short time.' That latter individual is Dario Amodei of Anthropic, who has his own bullish ideas on AI. Then there's Jensen Huang of Nvidia, also counted among those who believe in the coming of AI robots, evidenced in articles like this one. So this is bigger than one man: it's a general consensus among the cognoscenti that the AI robots are imminent in their arrival. What will it look like when they are working next to us? Or will we be working at all? I'll end with this interesting little snippet from Whittemore: 'This is basically the first alarm, followed by a snooze button for some of the most important conversations we'll ever have as a human species.' If that interesting metaphor turns out to be true, we are in for quite a wild ride over the next decade or so.
