D.A. Davidson upgrades AMD to Buy, raises price target to $375

D.A. Davidson upgraded Advanced Micro Devices to Buy from Neutral on April 24 and raised its price target to $375 from $220. (investing.com) The firm said CPU demand is entering an “unprecedented” phase, according to reports on the note published Friday. AMD shares closed at $347.81 that day, up 13.91%. (investing.com) (morningstar.com) The upgrade came after a sharp run in AMD stock. CNBC showed AMD hitting a 52-week high of $352.99 on April 24, while Yahoo Finance listed a previous close of $347.80 before Tuesday’s pullback. (cnbc.com) (finance.yahoo.com) AMD entered that call with fresh operating momentum. The company reported record fourth-quarter 2025 revenue of $10.3 billion and full-year 2025 revenue of $34.6 billion on February 3. (ir.amd.com) AMD said fourth-quarter gross margin was 54% on a GAAP basis and 57% on a non-GAAP basis. For the first quarter of 2026, it guided to roughly $9.8 billion in revenue and about 55% non-GAAP gross margin. (ir.amd.com) (amd.com) The OpenAI angle in the bullish case is not speculative. AMD and OpenAI announced a strategic partnership on October 6, 2025, covering 6 gigawatts of AMD Instinct GPU capacity across multiple product generations. (amd.com) (openai.com) That agreement said the first 1 gigawatt deployment of AMD Instinct MI450 GPUs is set to begin in the second half of 2026. It gave analysts a concrete customer name and a dated rollout, not just a broad artificial-intelligence sales pitch. (amd.com) (openai.com) By Tuesday morning, the rally had cooled. AMD traded around $326.26 at 10:20 a.m. Eastern on April 28, down about 2.5% on the day, showing how quickly analyst-driven momentum can fade even after a big target increase. (investing.com)