A Prediction for Another 30% Rise for AMD as Its Chips Gain Traction With Hyperscalers

Advanced Micro Devices (AMD) still has significant growth potential in 2025 despite already posting strong gains this year, according to Truist Securities.

‍

The firm raised its rating on the chipmaker from hold to buy and boosted its price target to $213 per share, up from $173. That implies more than 30% upside from Monday’s closing price, signaling continued confidence in AMD’s trajectory.

‍

Analyst William Stein explained that the upgrade reflects a more “constructive view from the field,” pointing to a noticeable shift among hyperscale customers, who are increasingly adopting AMD’s solutions as a viable alternative to Nvidia.

‍

“Over the past month, we’ve seen growing feedback that hyperscalers are working closely with AMD, showing genuine interest in scaling AMD solutions,” Stein noted in his report.

‍

He highlighted how AMD’s role in the data center market has evolved dramatically.
“Until 2018, AMD controlled less than 1% of the data center CPU market. At that time, the company barely registered as competition against Intel’s dominance,” he said.

‍

However, as Intel faced challenges in manufacturing processes and product design, major customers began exploring AMD as a strategic partner. Stein emphasized that once AMD proved it could meet certain “must-have” performance and reliability standards, customers started allocating a meaningfully larger share of infrastructure to the company.

‍

AMD’s impressive momentum this year further supports the bullish outlook. Shares have already surged over 35% in 2025, and the stock climbed another 2% in premarket trading following Truist’s upgrade.

‍

The optimism isn’t limited to Truist. Market sentiment toward AMD remains broadly positive. Out of 53 analysts covering the stock, 36 have issued buy or strong buy ratings, according to data from LSEG.

‍

With growing adoption from hyperscale clients, continued share gains in the data center market, and strong analyst support, AMD looks poised to maintain its upward trajectory through 2025.

‍