Why AMD Stock Is Rising Today

Advanced Micro Devices (NASDAQ: AMD) stock has moved higher in Monday's trading despite giving up some of its early gains. The company's share price was up 1.1% as of 3:15 p.m. ET. At the same point in the day's trading, the S&P 500 and the Nasdaq Composite were both up 0.7%.

In addition to positive momentum for the broader market, AMD stock is getting a lift from bullish analyst coverage. The company's share price is now up 22% over the last three months.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

AMD stock moves higher on analyst upgrade

Melius published new coverage on AMD stock before the market opened today and upgraded its rating on the stock from hold to buy. The investment firm also increased its one-year price target on the stock from $110 per share to $175 per share.

Melius believes that AMD's outlook in the artificial intelligence (AI) has improved significantly since its last write-up on the stock. The firm sees the tech hardware specialist benefiting from demand for graphics processing units (GPUs) used to run AI inferencing applications. Melius thinks investors are about to get more excited about AMD's GPU sales outlook from 2026 through 2028 and thinks that the MI400 processor the company is set to launch next year is poised to be a winner.

What's next for AMD?

Investors have been becoming more bullish about AMD's position in the AI space lately, and the Advancing AI conference hosted by the company earlier this month has helped strengthen confidence in the company's roadmap. The company's recently launched MI350 processor seems to be off to a strong start, and the launch of the MI400 chip next year could further strengthen its competitive positioning. While AMD appears unlikely to topple Nvidia in the high-end GPU market that currently centers heavily around AI training, it's looking increasingly likely that it will be able to score some wins in the space and also record strong results when it comes to less demanding processors used for AI inference applications.

Should you invest $1,000 in Advanced Micro Devices right now?

Before you buy stock in Advanced Micro Devices, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.