Why AMD Shares Are Trading Higher on Monday?

Oct 13 - Advanced Micro Devices AMD shares rose about 2% on Monday after several brokerages raised their outlooks on the chipmaker, citing optimism over its expanding role in artificial intelligence.

KGI Securities upgraded AMD to Outperform from Neutral and raised its price target to $260 from $150, implying an upside potential of roughly 17%. The firm pointed to strengthening demand for AMD's AI chips and new data center partnerships as key drivers for growth.

Analysts at Bank of America and Mizuho also reiterated bullish views. Bank of America's Vivek Arya maintained a Buy rating, while Mizuho's Vijay Rakesh reaffirmed an Outperform and raised his target to $275 from $205, suggesting about 24% upside.

The renewed analyst interest followed AMD's recent collaboration with OpenAI to develop AI-focused computing solutions. Nvidia NVDA and Broadcom AVGO have also announced similar partnerships, highlighting intensifying competition in the AI chip sector.

AMD shares have advanced about 82% so far in 2025 and more than 30% over the past year, driven by robust AI chip demand and continued positive sentiment from Wall Street analysts.