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Shares of the Chipmaker Are Rising to Start the Week
Key Takeaways
- AMD said Monday that it’s gained Microsoft as a customer for its Helios rack-scale system, which could bring it in closer competition with Nvidia.
- The chipmaker is set to host its “Advancing AI” event later this week, which could bring more announcements regarding its latest products.
- AMD shares, which have more than doubled this year, were up 4% in recent trading.
A major new customer for Advanced Micro Devices’ latest tech has the chipmaker’s stock rising to start what could be a pivotal week for the Nvidia rival.
Shares of AMD (AMD) were up more than 3% around $513 in recent trading after the company said it’s added Microsoft as a customer for its Helios rack-scale system, which could bring the chipmaker in closer competition with leader Nvidia (NVDA). Other semiconductor stocks also gained, after losing ground late last week.
The announcement comes just ahead of AMD’s two-day “Advancing AI” event starting Wednesday, where it’s expected to showcase its latest AI products and partnerships. CEO Lisa Su is set to headline a keynote address scheduled for 12:30 p.m. ET Thursday. (You can watch it here.)
Analysts at Bank of America said in a note Friday that AMD could also offer “greater visibility into 2027 deployments, production ramps, and broader hyperscale adoption” at the event, with a more ambitious update to its longer-term outlook based on growing AI demand.
Why This Matters to Investors
The addition of Microsoft to AMD’s early Helios customers, which also include Meta, OpenAI and Oracle, could mark a strong start to the week for the chipmaker.
Jefferies analysts, who told clients last week that they anticipated Microsoft would be a likely new customer for AMD’s latest chips, along with Anthropic, said such deals would represent a “major positive for the stock and reinforce confidence in AMD’s ability to compete at the highest level without incentives.”
Wall Street analysts are widely bullish on AMD. Jefferies, along with six of the eight other analysts with current ratings surveyed by Visible Alpha, have issued “buy” or equivalent recommendations, compared to two neutral ratings. Their mean target around $545 would suggest they still see about 6% upside for the stock after a strong run this year, despite a recent pullback for the AI trade.
With Monday’s gains, AMD stock has risen roughly 140% this year, making it one of the best-performing S&P 500 stocks of 2026 so far. It’s more than tripled over the past 12 months.
Read the original article on Investopedia
