Advanced Micro Devices (AMD) has reached a new milestone, with its shares hitting an all-time high of approximately $253 on Friday, reflecting increasing investor enthusiasm ahead of the company’s earnings report scheduled for November 4. Analysts have forecasted that AMD will earn $0.97 per share for its fiscal third quarter, a notable rise from last year’s $0.76.
AMD’s stock has impressively increased by over 200% since its low point earlier in April, primarily fueled by strategic advancements in artificial intelligence (AI) partnerships. Notably, a significant collaboration with OpenAI, which involves providing 6 gigawatts of computing power, has reinforced investor confidence. Additionally, a strategic agreement with Oracle Cloud for the deployment of about 50,000 next-generation MI450 Instinct GPUs, anticipated to commence in the third quarter of 2026, has bolstered the chipmaker’s standing in the market.
The company’s financial fundamentals also bolster this upward trend. AMD reported a revenue of $7.69 billion in the second quarter, reflecting a 32% increase year-over-year, with expectations for third-quarter revenues to soar to around $8.7 billion. Furthermore, a recent revenue-sharing agreement with the U.S. government has paved the way for AMD to resume business in China, enhancing its market reach.
Options trading data further suggests optimism for AMD shares. According to Barchart, options contracts set to expire in mid-January 2026 indicate an upper target around $298. For the immediate future, the estimated trading range for AMD through the end of October is approximately $237 to $265, presenting a possible 5.63% return by next week.
With increasing strategic AI partnerships, robust financial performance, and an expanding footprint, AMD appears well-equipped for sustained growth. Wall Street analysts are optimistic about the company’s trajectory, signaling significant potential for further gains in AMD shares, especially as they trade at a competitive price compared to Nvidia. The future looks promising for AMD as it navigates through the evolving landscape of technology and innovation.