• The firm revised its target upward, citing robust server demand driven by AI and high-performance computing.
• Meta’s agreement to deploy up to six gigawatts of AMD GPUs, with AMD providing custom AI accelerators, has provided a lift to the company’s prospects.
• On Thursday, AMD announced a new deal with France to expand its global AI presence.

Advanced Micro Devices Inc. (AMD) stock hit a record high on Thursday as the company is emerging as a key player in the race to dominate artificial intelligence infrastructure.

Analysts at Bernstein have lifted their outlook for Advanced Micro Devices, signaling renewed confidence in the chipmaker’s long-term prospects. 

Bernstein increased its price target to $265 from $235 while maintaining a ‘Market Perform’ rating, according to TheFly. 

The firm has adjusted its price target to reflect stronger expectations for the server segment, which continues to benefit from rising demand for high-performance computing and artificial intelligence workloads. 

A key factor in Bernstein’s updated valuation is AMD’s recently disclosed partnership with Meta Platforms Inc. (META) to advance artificial intelligence infrastructure. 

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSM) reported strong first-quarter earnings, which helped lift investor sentiment. TSM’s Q1 diluted earnings per share reached NT$22.08, surpassing expectations of NT$20.96. Revenue totaled NT$1.134 trillion, up 35% year over year and above the estimated NT$1.117 trillion, according to Fiscal AI data. 

Advanced Micro Devices’ stock traded over 4% higher on Thursday morning. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘high’ message volume levels. 

A major catalyst came earlier this year when Meta committed to deploying up to six gigawatts of AMD graphics processing units. Under the agreement, AMD will supply customized AI accelerators designed specifically for Meta’s computing needs. The initial phase will involve a large-scale rollout beginning in the latter half of 2026, using a tailored GPU built on AMD’s MI450 architecture. 

The agreement extends beyond hardware supply, linking both companies through performance-based financial incentives that could deepen their strategic alignment over time.

On Thursday, AMD also announced that it is expanding its global artificial intelligence footprint through a new agreement with the French government, aiming to strengthen the country’s digital capabilities.

The initiative, formalized through a letter of intent signed in Paris, outlines a multi-year effort to enhance France’s AI ecosystem by improving access to computing infrastructure, education, and research tools.

AMD stock has gained over 26% year-to-date. 

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