What Happened?

Shares of computer processor maker AMD (NASDAQ:AMD) jumped 5.4% in the morning session after Rosenblatt's analysts named the stock a top AI pick for the first half of 2025. The firm has a Buy rating and a $250 price target, which implied a 100% share price upside. The analysts called out AMD's growing share in the CPU and GPU market and its robust pipeline of custom AI chips.

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What The Market Is Telling Us

AMD’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The previous big move we wrote about was 14 days ago when the stock dropped 5.3% on the news that Bank of America analyst Vivek Arya downgraded the stock's rating from Buy to Neutral and lowered the price from $180 to $155. Arya warned that tech giants like Amazon, Microsoft, and Alphabet are leaning heavily on Nvidia's chips, signaling a strong risk that AMD could lose significant market share.

AMD is down 9.5% since the beginning of the year, and at $125.37 per share, it is trading 40.7% below its 52-week high of $211.38 from March 2024. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $2,758.

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