Advanced Micro Devices (AMD) shares experienced a rise of over 3% in premarket trading on Monday, reaching $534.10. This increase aligns with a broader positive sentiment affecting AI and semiconductor stocks.

Analysts from major financial institutions have raised their price targets for AMD. Goldman Sachs increased its target from $450 to $640, while maintaining a Buy rating. Cantor Fitzgerald went even higher, setting a new target of $700, the highest on Wall Street, with an Overweight rating.

Analyst C.J. Muse from Cantor Fitzgerald highlighted the strong growth momentum in AMD's computing segment as a key factor for favorability over competitors, including Nvidia and Broadcom. UBS also raised its target to $670 last month, while Wells Fargo adjusted its target to $615.

Strong Data Center Performance

AMD's data center revenue has shown remarkable growth, surging 57% year-over-year to $5.8 billion, now contributing to more than half of the total revenue. This growth is attributed to the successful launch of the EPYC Venice server chips and a partnership with Rackspace Technology aimed at delivering significant AI computing capacity by 2028.

From a technical standpoint, AMD currently trades above its key moving averages, sitting approximately 4% above its 20-day Simple Moving Average (SMA) and 16.8% above its 50-day SMA. The formation of a golden cross in July 2025 remains intact, with immediate resistance levels around $546.50 and critical support near $437. The Relative Strength Index (RSI) suggests a neutral momentum at 52.47.

Investment in Autonomous Driving

Additionally, AMD Ventures has invested in the Japanese autonomous driving startup Turing Inc., which recently completed a $79 million Series A extension, valuing Turing at around $600 million. Turing now utilizes AMD GPUs for about 10% of its AI training, decreasing its reliance on Nvidia hardware.

Turing is working on self-driving software targeted for consumer vehicles and robotaxis, with testing activities extending into denser urban areas as it prepares for a commercial launch in 2028.

Looking ahead, AMD's next earnings report is scheduled for August 4, with analysts predicting earnings of $1.55 per share, a notable increase from $0.48 the previous year, and total revenue of $11.28 billion compared to $7.68 billion in the prior year period.