Why Advanced Micro Devices (AMD) Stock Popped on Thursday

By Danny Vena, CPA – Apr 16, 2026 at 1:26PM ESTKey PointsAn analyst increased his price target on AMD stock, which it immediately eclipsed.Despite assigning a hold rating, the analyst is bullish on AMD's prospects.The stock has delivered scorching gains over the past year, with a commensurate increase in its valuation. Shares of Advanced Micro Devices (AMD +5.92%) charged sharply higher Thursday, climbing as much as 8.2%. As of 1:24 p.m. ET, the stock was still up 7.3%. The catalyst that sent the semiconductor specialist higher was bullish commentary by a Wall Street analyst. Image source: The Motley Fool. Playing catch-up Bernstein analyst Stacy Rasgon remains bullish on AMD, maintaining a market perform (hold) rating and raising his price target to $265 from $235. That increase was barely 3% above Wednesday's closing price, and it's worth noting that the stock had already eclipsed that new, higher price target in early trading on Thursday. The analyst believes that, given the current market conditions, AMD will sell fewer PC chips and more server and data center chips, which carry higher margins. Furthermore, Rasgon cited AMD's deal with Meta Platforms, inked earlier this year, as offering potential upside for the company. The pair signed a multiyear, multigeneration deal that will see Meta deploy six gigawatts of custom variations of AMD's MI450 AI chips as part of the company's data center build-out. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(5.92%) $15.27Current Price$273.39Key Data PointsMarket Cap$421BDay's Range$261.58 - $279.3252wk Range$83.75 - $279.32Volume2.4MAvg Vol37MGross Margin45.99% The analyst lags his peers in his assessment of AMD's prospects. Wall Street is bullish on AMD, with 73% of analysts who cover the stock issuing a buy or strong buy rating. Furthermore, the average price target of roughly $289 is about 12% higher than Wednesday's close, though the stock continues to move higher. AMD has been on a tear over the past year, up 189%. However, with those gains comes a commensurate increase in its valuation, as the stock is currently selling for 104 times earnings and 41 times forward earnings. Artificial intelligence (AI) has staying power, which could continue to drive AMD stock higher well into the future. Investors should balance the ongoing opportunity against their risk tolerance and the potential for future volatility.Read NextApr 16, 2026 •By Anders BylundBest Crypto Stocks for 2026Apr 16, 2026 •By Harsh ChauhanPrediction: 1 Artificial Intelligence (AI) Stock That Will Be Worth More Than Palantir and Micron Combined by 2028Apr 15, 2026 •By Geoffrey SeilerAMD's MI450 Chip Could Change Everything for the Stock. Here's What Investors Need to Know Before It Launches.Apr 14, 2026 •By Parkev Tatevosian, CFAShould Investors Buy AMD Stock Today?Apr 13, 2026 •By Geoffrey SeilerI'm Not Buying Nvidia Right Now. These 2 Growth Stocks Are the Smarter AI Supercycle Play.Apr 10, 2026 •By John BallardIntel vs.

Advanced Micro Devices: Shifting Trends in RevenueAbout the AuthorDanny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.TMFLifeIsGoodX@dannyvenaStocks MentionedAdvanced Micro DevicesNASDAQ: AMD$273.68(+6.03%)+$15.56Meta PlatformsNASDAQ: META$674.92(+0.50%)+$3.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.