Shares of Advanced Micro Devices, Intel, and other semiconductor companies surged Tuesday, amid broader market gains as investors welcomed news of a cease-fire agreement between Israel and Iran.

AMD stock was up 7%, making it one of the best-performing stocks on the S&P 500 and Nasdaq, while Intel added 6%. NVIDIA, and Taiwan Semiconductor Manufacturing were also among the other chip stocks on the rise, boosting the Philadelphia Semiconductor Index up nearly 4%. Micron Technology climbed 5% higher a day ahead of its quarterly results.

On Monday, Melius analysts reportedly said AMD stock “has a lot more to go” as the company’s position in the artificial intelligence industry grows. The broker raised its price target to $175 from $110, above the Wall Street consensus of roughly $124 compiled by Visible Alpha. 

Investment firm CFRA also upgraded the Dr. Lisa Su-led company, citing upcoming products and sales.

“Our upgrade reflects several factors,” analyst Angelo Zino wrote in a note to clients. “First, we see AMD closing the competitive gap to NVIDIA (NVDA) in 2026 as it launches the MI400x and prepares to shift to rack-scale solutions, with the ZT deal complete, offering GPU sales upside. We see an expanding customer base for AMD's accelerators (e.g., Oracle, OpenAI) while the company is also making progress with its open-source AI software stack (ROCm).”

Zino, who raised his rating to Strong Buy from Buy and upped his price target to $165 from $125, added that the GPU server market is expected to see a sharp recovery, starting in the fourth-quarter, which should benefit AMD.

Lastly, sovereign AI opportunities and a potential scenario where AMD returns to China are also positives, Zino added.