Advanced Micro Devices Inc. (NASDAQ:AMD) shares ripped higher Thursday after Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) reported a blowout quarter and raised its full-year outlook.
- AMD stock is surging. See the chart and price action here.
TSMC — the foundry partner behind AMD’s MI350 and upcoming MI450 accelerators, as well as its next-generation EPYC server CPUs — booked a fourth straight quarter of record profit and lifted its 2026 revenue growth guidance to above 30%, citing “insatiable” AI infrastructure demand and tight 3-nanometer and advanced packaging capacity.
On the company's earnings call TSMC CEO C.C. Wei said demand remains robust and customer feedback continues to point to a very positive outlook, reinforcing the company’s conviction in a multi-year AI growth cycle.
He added that AI adoption is driving higher computational needs, which in turn boosts demand for leading-edge chips and suggests high demand for AMD’s AI-optimized products.
That readthrough is fueling AMD, which is leaning on TSMC’s leading-edge nodes to ramp its GPU lineup into hyperscaler deployments at Meta Platforms Inc. (NASDAQ:META), OpenAI and Oracle Corp. (NYSE:ORCL).
Bernstein is Bullish
Also boosting the stock, analysts at Bernstein raised the price target for AMD to $265 from $235 on Thursday.
The firm incorporates stronger server demand and the Meta AI deal into forecasts and now expects EPYC sales to grow about 50% year-over-year in 2026.
Bernstein projects 2026 revenue of $45.8 billion and EPS of $6.48, rising to $76.7 billion in revenue and $13.23 EPS in 2027, noting that consensus estimates may not fully reflect the Meta-related upside.
However, the firm said PC demand assumptions remain elevated and could weigh on the near-term outlook.
AMD Price Action: According to Benzinga Pro data, AMD shares were up 6.05% at $273.74 at the time of publication Thursday. The stock is trading 2% below its 52-week high, and with an RSI of 73.3, it’s in overbought territory.
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