Advanced Micro Devices (AMD) stock jumped more than 7% Tuesday, July 21, as investors cheered the chipmaker’s latest AI infrastructure push and looked ahead to its key AI event.On Monday, July 20, AMD introduced Helios, its first rack-scale AI system, which is expected to begin shipping later this year to customers including Microsoft (MSFT), Meta Platforms (META), OpenAI, and Oracle (ORCL).Helios’ rollout is widely considered AMD’s biggest step yet into rack-scale AI infrastructure as it seeks to compete more directly with Nvidia (NVDA). Investors are looking for signs that the company’s expanding AI portfolio can accelerate data center growth and help it gain share in the fast-growing AI market.The next catalyst comes July 22-23, when AMD hosts its Advancing AI 2026 event in San Francisco. CEO Lisa Su is expected to provide updates on the MI450X accelerator, the MI500 GPU family, next-generation EPYC server processors, and AMD’s broader AI roadmap.Many also view the event as AMD’s next opportunity to show how it plans to expand its presence in AI infrastructure ahead of second-quarter earnings on Aug. 4. AMD stock has outperformed the chip sector this yearLast week, AMD shares fell approximately 11% as semiconductor stocks broadly pulled back.The sell-off was triggered by Micron Technology (MU) amid concerns about growing competition from Chinese memory-chip maker ChangXin Memory Technologies. According to Barron’s, the company is preparing a Shanghai IPO that could raise as much as 66.7 billion yuan ($9.8 billion).Related: Cathie Wood sells $11.7 million of tumbling semiconductor stockAlthough AMD doesn’t compete directly in the memory market, many investors took profits across semiconductor stocks last week following their strong gains this year.Even after last week’s decline, AMD remains one of the best-performing large-cap chip stocks. Shares are up 152.8% year to date, compared with a 72.7% gain for the Philadelphia Semiconductor Index. Nvidia, by comparison, has gained 11%.In May, AMD reported strong first-quarter results, raising its outlook for the data center CPU market as demand for agentic AI continues to grow. The company also reiterated that its AI GPU business is expected to exceed its long-term target of an 80% compound annual revenue growth rate. Meanwhile, Ark Invest CEO Cathie Wood has been trimming her AMD position. As of July 21, Ark funds had sold 145,550 AMD shares this month, worth roughly $79 million based on Tuesday’s price. Even after the recent selling, AMD remains the eighth-largest holding in the ARK Innovation ETF.
AMD shares are up more than 150% year to date.Getty Images
Bank of America stays bullish on AMD stockBank of America reiterated its buy rating and $620 price target on AMD ahead of the company’s AI event, according to a recent research note sent to TheStreet.The firm said AMD could use the event to expand its long-term AI opportunity beyond the more than $1 trillion market outlined at its 2025 Analyst Day. “We would not be surprised to see management frame a path toward a $1.5 trillion + 2030 AI infrastructure TAM, spanning accelerators, networking, memory, CPUs and rack-scale systems,” the analysts wrote. Related: Bank of America CEO warns inflation will back Fed into a corner”With the event occurring ahead of the Aug. 4 earnings release, we expect commentary to remain focused on long-term opportunities rather than near-term guidance.”Bank of America said investors will likely focus on whether Helios and the MI450 platform can better compete with Nvidia’s rack-scale AI systems. After all, the key debate is “whether AMD can evolve from an accelerator supplier into a broader AI systems company.””Investor focus will likely center on whether Helios/MI450 can narrow the gap versus Nvidia’s rack-scale AI systems,” the firm wrote, adding that investors should watch for updates on 2027 deployments, production ramps, and broader hyperscale adoption.The firm also believes demand will be more important than customer announcements.”We believe the more important message may be demand rather than customer logos,” Bank of America wrote, adding that AMD’s data center revenue could grow more than 100% in 2027 as MI accelerators ramp and EPYC adoption expands.Many other Wall Street analysts believe in AMD stock’s higher potential, despite its strong gains this year.Last week, UBS raised its price target on AMD to $700 from $670 while maintaining its buy rating. The firm said supply chain checks point to stronger demand for AMD’s AI accelerators through 2027 and believes Amazon could emerge as a major customer for the MI450X platform.UBS also raised its 2027 revenue forecast to $83.4 billion from $79.2 billion and increased its earnings estimate to $14.63 per share.Related: Key auto parts maker closes factory, lays off 325 workers