Advanced Micro Devices is riding one of its strongest market streaks in recent memory. Shares of AMD jumped 7.7% on Wednesday, marking the company’s seventh straight day of gains—its longest winning streak since February of last year. The rally reflects a wave of optimism surrounding AMD’s fast‑growing server CPU business, particularly as artificial intelligence infrastructure spending accelerates worldwide.
The momentum is being driven by increasingly bullish analyst commentary. KeyBanc’s John Vinh and Bernstein’s Stacy Rasgon both raised their expectations for AMD’s fourth‑quarter results, citing stronger‑than‑expected demand for the company’s latest‑generation Turin data‑center CPUs and improving visibility into hyperscaler orders.
Analysts Turn Upbeat as Server CPU Demand Surges
KeyBanc analyst John Vinh expects AMD to beat revenue expectations and raise guidance when it reports earnings next month. His optimism is rooted in one key trend: AMD’s server CPU capacity for the year is nearly sold out, with hyperscalers scrambling to secure supply.
Vinh believes AMD may even be able to raise average selling prices by 10% to 15%, a rare dynamic in the semiconductor industry and a sign of tightening supply conditions. He also reiterated that AMD’s server CPU business could grow at least 50% this year, driven by AI data‑center demand.
Bernstein’s Stacy Rasgon echoed that view, raising his Q4 revenue forecast and predicting that AMD’s EPYC processors—including the fifth‑generation Turin line—will see 30% sales growth this year. Rasgon’s checks suggest that enterprise and cloud customers are accelerating deployments of AMD’s newest chips, which offer significant performance gains over prior generations.
The bullish commentary aligns with broader industry data showing that AMD’s EPYC platform has been steadily gaining share in the server market, particularly as cloud providers diversify away from Intel.
Why Turin Matters: AMD’s Biggest CPU Catalyst in Years
The centerpiece of AMD’s current momentum is its Turin CPU family, the company’s next‑generation data‑center platform designed for AI‑heavy workloads. Analysts say Turin is resonating with hyperscalers because of its:
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Higher core counts
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Improved energy efficiency
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Strong performance in AI inference and cloud workloads
Morningstar notes that analysts are "increasingly upbeat" about AMD’s CPU momentum for AI data centers, with Turin positioned as a major growth driver heading into 2026.
With AI infrastructure spending expected to remain elevated for years, Turin gives AMD a credible path to expand its footprint in a market long dominated by Intel and increasingly influenced by Nvidia’s GPU‑centric architectures.
The GPU Question: Wall Street Still Split
Despite the stock’s strong run, analysts caution that sentiment on AMD remains mixed. The company’s GPU roadmap—particularly its Instinct MI400‑series accelerators and the upcoming MI455 chips—continues to draw scrutiny.
Vinh notes that while bullish investors are encouraged by AMD’s progress in competing with Nvidia in AI accelerators, skeptics still question whether AMD can meet expectations on both performance and production volume for its GPU lineup.
This tension has become a defining feature of AMD’s investment narrative:
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Bulls see a company rapidly gaining share in CPUs and making credible inroads into AI accelerators.
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Bears argue that Nvidia’s entrenched ecosystem and software stack remain formidable barriers.
The upcoming earnings report will be a key moment for AMD to address these concerns.
Spotlight on Helios: AMD’s First Rack‑Mount AI System
One of the most closely watched elements of AMD’s AI strategy is Helios, the company’s first rack‑mount AI compute solution. Helios integrates AMD’s Instinct GPUs into a turnkey system designed for large‑scale AI training and inference.
Investors will be looking for updates on:
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Production timelines for Helios
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Deployment schedules for the MI455 GPU series
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Customer adoption, particularly among hyperscalers
Rasgon reports that AMD has "at least" reached an agreement with OpenAI, with Helios systems expected to begin deployment in the second half of this year. However, he notes that OpenAI remains AMD’s only major Helios customer at the moment, meaning the entire AI narrative hinges on whether AMD can secure additional large‑scale buyers.
Because mass production for OpenAI won’t begin until later in the year, Rasgon believes near‑term pressure on AMD’s AI business will be limited. Instead, he expects AMD to benefit first from strong server CPU demand and market‑share gains in its core business.
Why AMD’s Rally Matters
AMD’s seven‑day winning streak is notable not just for its length, but for what it signals about investor sentiment. After a volatile 2025 for semiconductor stocks, the market appears to be rewarding companies with:
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Clear visibility into AI‑related revenue
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Strong demand from hyperscalers
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Competitive product roadmaps
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Improving pricing power
AMD checks all four boxes—at least on the CPU side.
The stock’s recent performance also reflects a broader shift in the AI infrastructure market. While Nvidia continues to dominate AI accelerators, cloud providers are increasingly diversifying their compute stacks, creating opportunities for AMD to expand its footprint.
What to Watch in AMD’s Upcoming Earnings
When AMD reports earnings next month, investors will be focused on several key areas:
1. Updated AI revenue forecasts
Analysts want clarity on how quickly AMD’s AI business can scale—and how much of that growth depends on OpenAI.
2. Server CPU supply and demand
With capacity nearly sold out, AMD’s ability to expand production will be critical.
3. Helios deployment timelines
Any delays could weigh on sentiment.
4. GPU competitiveness
Investors will look for performance benchmarks and customer wins that validate AMD’s positioning against Nvidia.
5. Pricing trends
If AMD can raise CPU prices by 10–15% as Vinh suggests, it would be a major tailwind for margins.
Bottom Line
AMD’s latest rally is more than just a technical streak—it reflects growing confidence in the company’s ability to capitalize on the AI infrastructure boom. With server CPU demand surging, Turin gaining traction, and Helios preparing for deployment, AMD is entering one of the most consequential phases of its AI strategy.
But the road ahead isn’t without risk. GPU competitiveness remains a question mark, and the company’s AI narrative hinges heavily on its partnership with OpenAI.
For now, though, AMD has momentum—and Wall Street is taking notice.