AMD stock jumped another 3% in premarket trading. Shares have gained about 30% in June.

Melius Research on Monday upgraded AMD to "Buy" with a $175 price target, with the firm projecting a “sustainable surge in inferencing.”

And on Tuesday, CFRA Research raised the semiconductor stock to "Strong Buy" with a $165 price target, as analyst Angelo Zino wrote to clients that “we see AMD closing the competitive gap to NVIDIA in 2026 as it launches the MI400x.”

The upcoming MI400 series and Helios rack-scale system are generating significant optimism among analysts, who predict the company's earnings per share could exceed $8 within two years. While AMD currently trails Nvidia in the AI chip market, recent product improvements and partnerships are helping to close this competitive gap.

More broadly, the semiconductor industry outlook remains positive, with projections indicating an expansion from $452 billion in 2021 to $803 billion by 2028. CEO Lisa Su's vision of the AI accelerator market exceeding $500 billion by 2028 appears increasingly achievable, given the company's current trajectory and strategic positioning.