Category: general

The post AMD stock jumps 10% after Lisa Su calls Big Tech’s AI spending ‘the right gamble’ appeared com. AMD shares jumped 10% on Wednesday, shrugging off weakness across tech stocks, after CEO Lisa Su said that companies spending billions on computing aren’t wasting money, but speeding up progress. When asked about Big Tech’s aggressive AI investment pace, Lisa said, “I don’t think it’s a big gamble. I think it’s the right gamble.” Her comments hit right as Wall Street is digesting more than $380 billion in AI-related spending across major tech companies. According to CNBC, Lisa explained that many of AMD’s biggest clients (especially hyperscalers) have been pouring cash into compute infrastructure over the past year, and they’re now starting to see payback. She called this an “inflection point,” saying returns are showing up faster than many expected. Wells Fargo boosts AMD price target to $345 after analyst day At AMD’s recent analyst event, Wall Street bros showed up, took notes, and one of them, Wells Fargo, walked away fully convinced. The bank kept its overweight rating and bumped its price target up from $300 to $345, forecasting a 45% potential upside. Analyst Aaron Rakers backed the move with specifics: he said AMD is gaining market share in both server chips and PC CPUs, while also expanding in datacenter GPUs-and most importantly, its profit engine is just warming up. Aaron wrote in his note that earnings could climb past $10 per share by 2027, and if growth continues, the number could hit over $20 EPS by 2030. That’s based on a financial model AMD presented, with revenue expected to grow more than 35% per year, and the datacenter segment alone growing at a pace of over 60% annually. He didn’t skip over risks, though. Aaron mentioned tech roadmap delays, leadership turnover, stronger competition, and overhyped investor expectations as potential potholes ahead. While AMD rallied, the Nasdaq Composite dropped.