Advanced Micro Devices continues to demonstrate its capacity to deliver positive market surprises, with recent developments reinforcing this trend. While much of the technology sector remains focused on Nvidia, AMD has been securing multibillion-dollar agreements with major industry players including Oracle and OpenAI. This strategic positioning has prompted President Capital to elevate its price target for AMD shares to $264, raising questions about whether the company can successfully capture market share from its primary competitor.
Major Contracts Drive Optimism
The foundation for this bullish sentiment stems from substantial hardware commitments from leading technology firms. Oracle has confirmed an order for 131,000 MI355X GPUs from AMD, representing a significant endorsement of AMD’s technological capabilities. Simultaneously, OpenAI has established a strategic partnership that will deploy AMD Instinct GPUs with computational capacity reaching up to 6 gigawatts by 2030.
These commercial achievements are already reflecting in the company’s financial performance. For the third quarter of 2025, AMD’s data center segment revenue climbed to $4.3 billion. Overall revenue showed substantial growth, increasing 35.6% to reach $9.25 billion, while net income surged from $771 million to $1.24 billion.
Analyst Confidence Strengthens
Market experts are taking note of AMD’s progress. President Capital revised its price target upward from $240 to $264 on Friday while maintaining its buy recommendation. The firm cited AMD’s strengthening position in the AI semiconductor market and its emerging status as a credible alternative to Nvidia.
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This perspective finds support across the analytical community. Earlier in the week, Bank of America reaffirmed an even more ambitious $300 price target. The consensus among market researchers suggests approximately 38% upside potential, a signal that institutional investors appear to be acknowledging. Advisors Asset Management increased its position by 16.4% during the second quarter, demonstrating this growing institutional confidence.
Technical Positioning and Future Prospects
From a technical analysis standpoint, AMD shares are trading notably above their 200-day moving average and approaching 52-week highs. The updated price target from President Capital places the $220 level as the next significant resistance point. A successful breach of this barrier could potentially open a path toward the more optimistic projections ranging between $240 and $300.
Looking further ahead, AMD’s anticipated MI400 “Helios” series, expected in 2026, promises to further reduce total operating costs for enterprise clients—a crucial competitive advantage against Nvidia. Additionally, while Amazon’s $50 billion investment in sovereign AI infrastructure primarily benefits AWS, AMD stands to gain as a supplier meeting the rising demand for hardware that complies with stringent security standards.
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