AMD Stock Climbs on New Analyst Coverage Highlighting AI Growth Potential

Advanced Micro Devices (NASDAQ:AMD) shares gained 1.9% in pre-open trading, lifted by new analyst coverage from William Blair and sustained positive sentiment from a significant price target increase by Goldman Sachs earlier in the week.

Analyst Initiation Highlights AI Growth

William Blair initiated coverage on AMD with a Market Perform rating, citing the company's strategic position to capitalize on the artificial intelligence infrastructure build-out. Analyst Sebastien Naji's note projects AMD's sales could double from $52 billion in 2026 to over $104 billion by 2028.

The firm anticipates this growth, driven by demand for GPUs and CPUs for AI model deployment and inference, could push non-GAAP earnings per share toward $20 in 2028. While acknowledging that AMD's GPU portfolio has lagged competitor Nvidia, William Blair noted the company has accelerated its product roadmap and is differentiating itself through memory access, pricing, and open standards.

Shares Rebound From Recent Volatility

The positive commentary adds to momentum from earlier this week when Goldman Sachs raised its price target on AMD to $640, a move that has continued to support investor sentiment. The pre-market gains represent a rebound for the stock, which fell sharply on Tuesday following a Reuters report that Chinese AI startup DeepSeek is developing its own custom inference chip.

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The stock's move came against a mixed market backdrop, with the tech-heavy Nasdaq showing modest gains while the S&P 500 and Dow Jones Industrial Average slipped. The recovery suggests investors are focusing on AMD's long-term AI narrative over near-term competitive headlines.

Upcoming Earnings Catalyst

Investors are now looking ahead to AMD's next major financial update. The company announced it will report its fiscal second-quarter 2026 results on Tuesday, August 4, after the market close.

The upcoming earnings report and the company's 'Advancing AI' event will provide crucial updates on its competitive standing and growth trajectory. These events will be closely watched for insights into AMD's ability to capture market share in the booming AI silicon sector.