A flurry of corporate deals, analyst upgrades, and next-generation chip announcements has turbocharged AMD’s stock this year, with the chipmaker’s shares surging roughly 143% year to date. The rally, which has pushed the stock to around €463.80, reflects a sweeping AI infrastructure push that spans cloud partnerships, quantum computing research, and in-memory technology acquisitions.
A June Blitz of AI-Focused Moves
The most intense cluster of activity came in mid-June. On 15 June AMD completed the acquisition of MEXT Corporation, a specialist in AI-driven memory optimization. MEXT’s technology makes cheap NAND flash behave like much pricier DRAM, effectively doubling to quadrupling usable memory capacity while halving costs. AMD is positioning this capability squarely at the inference and agentic AI market, where memory bandwidth often becomes a bottleneck.
The very next day, AMD and Rackspace Technology signed a binding agreement to install 30 megawatts of AMD-based AI compute capacity across Rackspace’s global data centres. The rollout begins in late 2026 and continues through 2028. AMD steps in as the lead chip-level technology partner, targeting regulated sectors such as financial services and healthcare.
Earlier in the month, AMD also joined forces with Oxford Quantum Circuits and JPMorgan Chase to build a quantum-AI data centre in London. JPMorgan will be the platform’s first dedicated user. The facility is expected to go live within twelve months of the June announcement, combining quantum computing with AI workloads for financial modelling and enterprise applications.
Analyst Upgrades Pile Up
Wall Street has taken notice. On 12 June Citigroup upgraded AMD from Neutral to Buy and raised its price target from $460 to $575, arguing that the GPU and AI accelerator segment is undervalued. Bank of America followed suit the previous day, lifting its target from $500 to $560 while maintaining a Buy rating. The bank also revised its estimate for the addressable server CPU market to over $170 billion by 2030, driven by growth in agentic AI systems.
The stock closed Wednesday at €445.90 in earlier trading, roughly 7% below its 52-week high of €480.30 reached on 15 June. More recent trading has lifted the price to €463.80, with the relative strength index sitting at 61.3 — still below the overbought threshold.
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Product Pipeline: Threadripper, EPYC and a New Foundry Partner
On the product front, AMD has confirmed the next-generation Threadripper TR6 “Mustang Peak”, built on the Zen 6 architecture and manufactured at TSMC using a 2-nanometer process. The platform will support PCIe 6.0, doubling bandwidth versus the current PCIe 5.0 standard. Launch is slated for the second half of 2027.
In the server arena, the next EPYC processor, codenamed “Venice”, is already in production at TSMC in Taiwan. AMD expects server CPU revenue to jump more than 70% year-over-year in the second fiscal quarter of 2026, with Venice forming the backbone of the next generation of cloud and AI infrastructure.
Separately, AMD is reportedly in talks with Samsung Foundry about manufacturing future CPUs. A production start would be no earlier than 2028, driven by increasing capacity constraints at TSMC and AMD’s desire to diversify its supply chain.
A Minor Security Headwind for Consumers
Not all news is forward-looking. AMD has removed the TSME encryption feature from its consumer Ryzen processors, as confirmed after the AGESA 1.2.7.0 firmware update on the Ryzen 7 9700X. Going forward, TSME will be available only on PRO-series CPUs. The move has sparked debate in user forums about potential security gaps on consumer chips, though it has not dented the broader investment narrative around AMD’s AI growth story.
With a 12-month gain of over 300% and a product roadmap stretching to 2028, the company is betting that its multi-pronged AI strategy — from memory-saving acquisitions to quantum research and next-gen silicon — will keep its stock momentum intact.
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