Key facts
- AMD shares rose 3.1% to $537.57 on Wednesday.
- The stock is approaching a $900 billion market cap.
- Morgan Stanley highlighted agentic AI demand as a driver for AMD's cloud CPU market share gains.
- AMD reported $10.25 billion in revenue last quarter, up 37.8% year over year.
- AMD's stock has surged 151% in 2026 and 354% over the past 12 months.
Advanced Micro Devices (AMD) stock climbed 3.1% to $537.57 on Wednesday, nearing a $900 billion market cap. The rise comes as investors look past recent concerns about competition from Nvidia's new AI chip for personal computers. Morgan Stanley analysts published a note arguing that despite broader semiconductor sector headwinds like surging memory prices and supply scarcity, AMD is well-positioned to gain cloud CPU market share driven by agentic AI demand. The firm also flagged Nvidia and Micron as beneficiaries of AI growth trends. AMD's most recent quarterly earnings, reported May 5, exceeded analyst expectations with revenue of $10.25 billion, up 37.8% year over year. Wall Street sentiment is broadly positive, with a majority of analysts holding an 'Overweight' rating, though the consensus price target is below current trading levels. CEO Lisa Su recently sold shares under a pre-arranged Rule 10b5-1 plan. The company also recently joined DriveNets' funding round and launched its 2nm EPYC server processor.