Two investment firms raised their ratings for chip company AMD. CFRA upgraded AMD stock to Strong Buy and set a new price target of $165. The firm had previously set the target at $125. Melius Research also boosted AMD with a Buy rating and $175 price target. Both companies believe AMD can compete better with NVIDIA.
CFRA analyst Angelo Zino said AMD could narrow the performance gap with NVIDIA during 2026. NVIDIA currently dominates the artificial intelligence chip market. AMD wants to capture more sales from its bigger rival. The analyst thinks AMD can succeed with new products and recent business deals. Strong demand from governments and large technology companies may help AMD grow.
AMD shares gained 6.8 percent after the positive analyst reports. The stock had struggled earlier during 2025 due to concerns about computer sales. Investors worried AMD could not compete well against NVIDIA. The company has gained 14 percent for the year after recent gains. Market confidence appears stronger after the analyst upgrades.
The chipmaker bought ZT Systems earlier during 2025 to expand its business reach. CFRA believes the purchase will help AMD sell to major customers like Oracle and OpenAI. The company also plans to launch its MI400x artificial intelligence chip. These developments could help AMD gain market share from NVIDIA. Government demand for AI technology may provide additional growth opportunities.
CFRA analyst Angelo Zino said AMD could narrow the performance gap with NVIDIA during 2026. NVIDIA currently dominates the artificial intelligence chip market. AMD wants to capture more sales from its bigger rival. The analyst thinks AMD can succeed with new products and recent business deals. Strong demand from governments and large technology companies may help AMD grow.
AMD shares gained 6.8 percent after the positive analyst reports. The stock had struggled earlier during 2025 due to concerns about computer sales. Investors worried AMD could not compete well against NVIDIA. The company has gained 14 percent for the year after recent gains. Market confidence appears stronger after the analyst upgrades.
The chipmaker bought ZT Systems earlier during 2025 to expand its business reach. CFRA believes the purchase will help AMD sell to major customers like Oracle and OpenAI. The company also plans to launch its MI400x artificial intelligence chip. These developments could help AMD gain market share from NVIDIA. Government demand for AI technology may provide additional growth opportunities.
