Advanced Micro Devices shares continued climbing on Monday, reaching a new 52-week high as investors increasingly bet that the next phase of the artificial intelligence infrastructure boom will extend well beyond graphics processing units into server CPUs and broader data center hardware.
AMD shares closed up 0.79% at $458.79 on Monday as Wall Street analysts pointed to growing demand for AI-related computing infrastructure and stronger long-term prospects for the server CPU market.
The stock hit its 52-week high of $469.22 during the session.
The latest optimism follows a report from GF Securities, which said AMD, Intel, and Qualcomm are positioned to benefit from a server CPU supercycle driven by artificial intelligence growth.
According to the firm, the server CPU market could expand from $26 billion in 2025 to $135 billion by 2030, representing a compound annual growth rate of 38%.
GF Securities said CPUs are becoming increasingly important as AI workloads evolve from model training toward inference and agentic AI applications.
AMD and Intel are expected to benefit most in the near term because x86 processors continue to dominate the server market.
GF Securities forecasts AMD’s server CPU business will grow 73% in 2026, while Intel’s data center and AI segment could grow 39%.
The firm also highlighted Qualcomm as a potential longer-term beneficiary as the company expands further into data center CPUs, with additional details expected during its June 24 investor day.
AI infrastructure rally broadens beyond Nvidia
Investor enthusiasm surrounding AMD reflects a broader shift in market sentiment across the semiconductor sector.
Analysts increasingly believe that AI infrastructure spending is expanding beyond GPU-focused companies such as Nvidia into firms supplying CPUs, memory, networking equipment, and optical technologies.
Mizuho analyst Jordan Klein told CNBC on Friday that the recent semiconductor rally could signal a “changing of the guard in AI,” as investors rotate into companies including AMD, Intel, Micron Technology, and Corning.
He said investors are increasingly betting that AI data centers will require a broader mix of advanced hardware components rather than relying solely on graphics processors.
Bank of America also noted growing long-term demand for CPUs, estimating that the data-center CPU market could expand from $27 billion in 2025 to $60 billion by 2030 as AI agents increase computing requirements.
However, some analysts have cautioned about the pace of gains across semiconductor stocks.
BTIG analyst Jonathan Krinksy told CNBC that the current rally resembles the late-1990s dot-com boom and warned the sector could eventually face a correction of 25% to 30% following the sharp run-up in valuations.
AMD earnings strengthen AI growth outlook
AMD’s recent quarterly earnings report further reinforced investor confidence in the company’s AI positioning.
The chipmaker reported earnings, revenue, and guidance above analyst expectations, supported by continued strength in its data-center business.
Chief Executive Officer Lisa Su said AI agents are creating “tremendous demand” across the AI adoption cycle.
She also said AMD had significantly increased its long-term outlook for the server CPU market, now expecting 35% growth over the next three to five years compared with its previous forecast of 18% issued in November.
Su added that AMD’s data-center business has become the “primary driver” of the company’s revenue and earnings growth.
She said inferencing and agentic AI are increasing demand for high-performance CPUs and accelerators, while server growth should “accelerate meaningfully” as AMD expands supply capacity.
Analysts raise targets as AI demand accelerates
Following AMD’s earnings results, several Wall Street firms raised their expectations for the stock.
Analysts at Goldman Sachs and Bernstein upgraded AMD shares to Buy ratings, citing stronger CPU demand tied to AI workloads.
JPMorgan Chase & Co. analysts described AMD’s latest results as highlighting a “structural inflection” across both server CPU and data-center accelerator growth trajectories.
Wedbush analyst Matt Bryson raised his AMD price target to $450 and reiterated an Outperform rating, saying the company is benefiting from stronger unit sales and pricing tied to compute racks supporting agentic AI workloads.
Meanwhile, Citi analyst Atif Malik raised his price target to $358 while maintaining a Neutral rating, noting that the firm remains constructive on AMD’s CPU opportunity linked to agentic AI demand.
The post AMD stock hits new high as Wall Street bets on AI CPU supercycle appeared first on Invezz
