Key Highlights

  • AMD closed at a record $649.42, up $17.67 a share, also marking a 52-week high.
  • Chief Executive Lisa Su said Demand for compute continues to outrun Supply and that AMD would substantially increase Manufacturing capacity.
  • Citigroup raised its price target on AMD to $800 from $575 while keeping its Buy rating.
  • Su traveled to Taipei for capacity talks with TSMC, the contract manufacturer that produces AMD's most advanced chips.

Advanced Micro Devices (NASDAQ:AMD), the chip designer and a heavyweight in the Nasdaq-100, climbed to a record on Tuesday, October 6, closing at $649.42, up from $631.75 the previous session. That gain of $17.67 a share also carried the stock to a 52-week high and put it among the session's notable movers in a market led by artificial-intelligence names.

The rally came as Chief Executive Lisa Su delivered a bullish message on demand. Su said demand for compute continues to outrun supply. She also said AMD would substantially increase its manufacturing capacity, and she traveled to Taipei for capacity talks with TSMC (NYSE:TSM), the Taiwanese contract manufacturer that produces AMD's most advanced chips.

Analysts Lift Their Sights

The stock also had support from Wall Street. Citigroup raised its price target on AMD to $800 from $575 and kept its Buy rating. A higher target signals that the analysts see more room for the shares to run than they did before, based on their view of the company's Earnings power.

AMD has become one of the main challengers to Nvidia in the market for AI accelerators, the specialized chips used to train and run large AI models in data centers. It also sells processors for servers, personal computers and gaming consoles. When the company says demand is outrunning supply, investors tend to read it as a sign that orders for its data-center products remain strong and that pricing power may hold up.

A Day Built for Chip Stocks

AMD's gains were part of a broad rally in AI-linked semiconductors. Marvell Technology (NASDAQ:MRVL) soared after raising its fiscal 2028 Revenue outlook to $20 billion at its Investor Day, and Broadcom (NASDAQ:AVGO) also climbed. Nvidia (NASDAQ:NVDA) edged up to a record close as its Market Value neared $6 trillion. Networking names such as Ciena (NYSE:CIEN), Arista Networks (NYSE:ANET) and Cisco Systems (NASDAQ:CSCO) jumped as well.

Not every chip stock joined in. Equipment makers such as KLA, Lam Research and Applied Materials slid, and Intel fell. Storage stocks Seagate and Western Digital tumbled on concerns about hard-drive competition.

The broader market set records. The S&P 500 rose 44.98 points to close at 7,818.93, and the Nasdaq Composite also hit a record just under 27,600. Treasury yields eased and the VIX Volatility index slipped to about 15. The scale of AI demand also showed up in economic data: US imports of Capital Goods hit a record $146.4 billion in August, driven by semiconductors and AI equipment.

TSMC Talks Will Be the Next Marker

Investors will look for more detail on AMD's capacity plans and any outcome from its talks with TSMC, along with the company's next Quarterly Report later in the earnings season. Commentary from customers and rivals about data-center spending will also be closely watched.