Advanced Micro Devices (AMD) shares surged 7% on Friday, boosted by optimism across the semiconductor sector and a wave of strong earnings and industry developments that reinforced investor confidence in chipmakers.
The rally pushed AMD’s market capitalization to $400 billion for the first time, marking another milestone in the company’s remarkable 2025 performance.
AMD’s $400 billion marketcap
AMD shares rose 7.2% on Friday to trade near $251.94, lifting the company’s valuation above the $400 billion mark based on Dow Jones Market Data.
Any closing price above $246.48 would secure AMD’s entry into the $400 billion market-cap club—a significant milestone for a company whose stock has more than doubled in value this year.
A large portion of AMD’s recent gains came in the past month, fueled by a major partnership with OpenAI.
The deal not only validated AMD’s technological capabilities but also signaled a growing role for the company in artificial intelligence (AI) infrastructure.
Wall Street analysts have responded positively, viewing the collaboration as a strong endorsement of AMD’s competitiveness in the rapidly expanding AI computing market.
As of Friday morning, AMD ranked as the 21st-largest company in the S&P 500 by market capitalization, up from 44th place at the start of the year.
The rapid ascent underscores how quickly investor sentiment has shifted in favor of AMD amid a global rush to develop and deploy AI-driven computing systems.
Intel’s strong quarter boosts sector sentiment
AMD’s rally coincided with a broader surge in semiconductor stocks following upbeat results from Intel and new research developments from IBM.
Intel reported third-quarter revenue of $13.7 billion, exceeding analyst expectations, and delivered adjusted earnings per share of $0.23, well above Wall Street’s forecast of just $0.02.
Intel executives cited unexpectedly strong demand for PC processors as corporations upgrade hardware to transition to Microsoft’s Windows 11 operating system.
CFO David Zinsner stated that the Windows refresh cycle and increased demand for AI servers have pushed current chip demand above supply levels—a trend expected to continue into 2026.
Benchmark analyst Cody Acree reaffirmed a Buy rating and a $50 price target for Intel, highlighting the company’s improved execution and capital strength.
Acree also pointed out that Intel’s positive forecast for PC sales bodes well for AMD, which serves the same markets for CPUs in both PCs and servers.
Mizuho analyst Jordan Klein echoed that view, noting that AMD remains “best positioned from rising cloud and AI-related server CPU demand.”
Intel’s strong quarter, he said, reinforces the outlook for AMD’s own sales momentum heading into next year.
AI partnerships and market momentum drive growth
The semiconductor industry’s renewed momentum has been heavily influenced by breakthroughs in AI and advanced computing.
AMD’s strategic partnership with OpenAI has become a focal point for investors, who see it as a sign that the company is gaining ground on rivals such as Nvidia and Intel in the high-performance computing segment.
The broader sector has also been buoyed by IBM’s progress in quantum computing.
The company announced that it successfully ran a quantum error correction algorithm on AMD-manufactured chips—a technological milestone that demonstrates the versatility and performance of AMD’s hardware.
With demand for AI, cloud computing, and advanced chip architectures accelerating, AMD’s continued climb reflects both sector-wide optimism and confidence in its execution.
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