AMD will jump another 30% as its chips gain traction with hyperscalers, Truist says

Truist upgraded AMD to Buy from Hold, raising its price target to $213 from $173, projecting over 30% upside. This upgrade is predicated on a more constructive field view, as hyperscale customers are increasingly partnering with and deploying AMD's technology at scale as an alternative to Nvidia. This strategic shift, building on AMD's historical market share gains against Intel, contributed to AMD shares gaining over 2% in premarket trading, adding to a robust 35% year-to-date increase in 2025.

Analysis

Truist has upgraded Advanced Micro Devices (AMD) to a Buy rating, raising its price target to $213 from $173, which suggests a potential upside of over 30% from its recent closing price. The upgrade is underpinned by increasingly constructive field reports indicating that hyperscale customers are now engaging with AMD in a more strategic, partnership-oriented manner, viewing its technology as a viable alternative to Nvidia's offerings for at-scale deployments. This development is significant as it mirrors AMD's previous success in the Data Center CPU market, where it capitalized on Intel's manufacturing and design stumbles to grow its market share from less than 1% prior to 2018. The market has reacted positively to this outlook, with the stock gaining over 2% in premarket trading and adding to its substantial year-to-date gain of more than 35% in 2025. The bullish sentiment from Truist aligns with a broader consensus, as LSEG data shows 36 out of 53 covering analysts rate the stock as a Buy or Strong Buy.

Key Decisions for Investors

• Given the strong analyst conviction and evidence of deepening partnerships with hyperscalers, investors could view this as a signal to maintain or increase exposure to AMD, as the company appears to be successfully challenging Nvidia's market position.
• Considering the stock's significant 35% year-to-date appreciation, it is crucial to monitor upcoming earnings reports for tangible evidence that this increased customer engagement translates into accelerated revenue growth in the data center segment.
• Investors should closely track the competitive landscape, as AMD's continued success is contingent on maintaining its technological edge and execution against both Nvidia's dominance in AI and any potential recovery from Intel in the CPU market.