Shares of Advanced Micro Devices (AMD) increased by more than 12% during trading on Friday, April 24, a significant market move that occurred without any new corporate announcements from the company itself. Financial analysts have attributed the stock price rise to a positive earnings report and forward-looking guidance issued by competitor Intel Corp., which investors and market watchers interpreted as a sign of strong industry-wide demand for central processing units (CPUs).
Intel’s report indicated high demand for its CPUs, a core component in computers and data centers, particularly as companies expand their artificial intelligence infrastructure. This news prompted increased investor interest in other major CPU manufacturers, including AMD.
In a note issued to clients on Friday, D.A. Davidson analyst Gil Luria wrote that Intel’s performance suggests a growing need for CPUs in the technology sector. “We figured CPUs were the next big bottleneck, but Intel’s results indicate that is already translating to very significant upside,” Luria stated. He added, “The CPU is reinserting itself as an indispensable foundation of the AI era.”
Following this assessment, D.A. Davidson upgraded its rating for AMD stock to “buy” from “neutral” and raised its price target for the company’s shares to $375.
The market reaction was also influenced by Intel’s stronger-than-expected guidance for the upcoming second quarter. Other financial analysts noted the implications for the broader semiconductor market.
“Intel now expects double digit server CPU unit growth in 2026, up from their prior expectations of only slight growth six months ago,” wrote Citi analyst Atif Malik in a Friday report. Malik subsequently upgraded Intel’s stock rating to “buy” from “neutral.”
This sentiment was shared by other analysts who see the performance of CPU makers and data center suppliers as interconnected. Suji Desilva of the investment firm Roth noted the need to re-evaluate valuations for companies in the sector. “Based on signs of better participation in high AI infrastructure growth, we are significantly increasing our price target to align INTC’s target multiple with the company’s AI infrastructure peers AMD, MRVL, CRDO, and ALAB,” Desilva wrote, referencing the stock tickers for AMD, Marvell Technology, Credo Technology Group, and Astera Labs.
In a separate analysis, Barclays analyst Tom O’Malley considered the competitive dynamics between the two chipmakers. In a note discussing potential risk scenarios for Intel, he wrote, “Our downside case of $40 is based upon 47x our downside CY27 PF EPS of $0.85, which assumes greater share loss to AMD,” among other factors.
During Friday’s trading session, Intel’s stock was trading at approximately $81 per share.
