AMD stock surged Wednesday morning, climbing nearly 5% in premarket trading after the chipmaker’s Financial Analyst Day on Tuesday.
The company unveiled an ambitious vision to hit $100 billion in annual data center revenue within five years, projecting $20 non-GAAP earnings per share by 2030.
CEO Lisa Su outlined plans to capture a bigger slice of the trillion-dollar AI market by 2030, with expectations for 35% overall revenue growth and 60% data center expansion annually.
The combination of bold guidance, the blockbuster OpenAI partnership, and fresh analyst upgrades created the perfect storm for momentum traders eyeing AMD’s competitive push against Nvidia.
AMD stock: The OpenAI deal that changed everything
The foundation for today’s rally was laid back in October when AMD announced its transformative partnership with OpenAI, a 6-gigawatt commitment worth tens of billions in future revenue.
That’s not just a supply contract; it’s a strategic vote of confidence, making AMD stock a perfect source to make your money work for you.
The agreement includes an unusual sweetener: OpenAI received warrants to purchase up to 10% of AMD’s stock, vesting as shipment milestones are hit.
The first gigawatt of AMD’s next-generation MI450 chips begins deployment in the second half of 2026, signaling real execution on an AI infrastructure buildout that could reshape the competitive landscape.
Since October 6, AMD shares have climbed 16%, with much of that reflecting investor excitement over the deal’s revenue potential and AMD’s ability to finally offer Nvidia credible competition in enterprise AI.
Wall Street clearly got the memo.
Wedbush raised its price target to $290 on November 10, while UBS bumped its estimate to $300, both suggesting double-digit upside from current levels.
Benchmark set an aggressive $325 target, the highest on the Street.
At least three analysts issued new calls or upgrades just in the past week alone, each highlighting AMD’s data center momentum and the market opportunity ahead.
These endorsements carry real weight: institutional investors often use analyst upgrades as air cover to justify stepping into hot stocks.
The timing, coming right after AMD’s analyst day, meant that Wall Street’s message landed at precisely the moment retail and momentum traders were already tuned in.
That created a feedback loop where each positive call encouraged more buying, which in turn attracted additional momentum flows.
Sentiment and execution risk: The wild card
Here’s the reality check: much of today’s enthusiasm hinges on execution.
AMD needs to deliver the MI450 chips on schedule starting in 2026, ramp production quickly, and prove the hardware and software stack work flawlessly at scale.
Nvidia remains the dominant force with roughly 95% of the current AI accelerator market, and the company’s next-generation Rubin platform will arrive around the same time as AMD’s MI450.
Analysts acknowledge these execution risks openly: supply chain constraints, yield challenges, and the sustainability of AI infrastructure spending all loom large.
Yet the combination of tangible partnership revenue, higher earnings guidance, and Wall Street votes of confidence has shifted market sentiment decisively in AMD’s favor, even if the hard part, proving the technology works, still lies ahead.
The post What’s fueling AMD stock’s monster rally today: AI deal, upgrades, or hype? appeared first on Invezz