AMD (AMD) stock rose more than 3% on Monday, after Rosenblatt and UBS raised their price targets on the stock and Microsoft (MSFT) announced it will use the company's upcoming Helios rackscale AI platform to power its Azure workloads.
The price target changes and Microsoft news come just days before AMD hosts its Advancing AI conference in San Francisco, Calif. The event will feature a keynote by CEO Lisa Su, who is likely to provide updates on the company's product roadmap and goals.
Rosenblatt raised its price target on AMD stock to $655 from $490, while UBS increased its target to $700 from $670. The stock has an 82.4% Buy rating among analysts, according to Bloomberg data. The remaining 17.6% have hold ratings on the stock.
The Microsoft deal is an important step for AMD as it prepares to ship its Helios platform to customers, including Meta (META) and Oracle (ORCL), later this year.
Helios combines the company's Instinct MI455X graphics processing unit (GPU), Epyc Venice central processing unit (CPU), its Pensando data processing unit (DPU), and ROCm software into a racksale system designed to rival Nvidia's (NVDA) popular Grace Blackwell and Vera Rubin platforms.
Like Nvidia's offerings, Helios features 72 GPUs wired together to communicate with each other. Racks can also be tied together to create massive GPU clusters for heavy-duty AI computing.
But Nvidia isn't sitting idly by, while AMD catches up. The company has already announced its next-generation Kyber rack, which will double the number of GPUs in a rack to 144.
AMD stock has climbed 139% year-to-date and 226% over the last 12 months as cloud computing companies have expanded their use of CPUs in their data centers to help power agentic AI workloads.
That's been a boon for AMD's bottom line. Data center revenue has increased from $6.5 billion in 2023 to $16.6 billion in 2025, and analysts estimate that it will climb even further to $31.2 billion this year.
That should help offset some of the softness in the company's Gaming segment, which is expected to see revenue decline 25% this year. Client revenue is expected to rise 11%.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.
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