AMD forecast sparks AI-driven rally in US chipmaker stocks

Yesterday 11:45

Shares of major U.S. semiconductor companies rose sharply on Wednesday after strong forecasts from Advanced Micro Devices (AMD) boosted investor confidence in long-term demand for artificial intelligence infrastructure.

AMD shares jumped nearly 18% in premarket trading, while other chipmakers including Intel, Arm Holdings, and Qualcomm also recorded significant gains.

Shift toward AI computing models

The rally reflects growing expectations that demand is expanding beyond graphics processing units (GPUs) toward central processing units (CPUs), as companies adopt more advanced “agentic AI” systems capable of autonomous decision-making.

AMD highlighted a shift toward AI “inference” workloads, where models are deployed in real-world applications, opening new growth opportunities for server CPUs.

Strong growth outlook for AMD

The company now expects its server CPU market to grow by more than 35% annually through 2030, significantly higher than its previous estimate.

This revised outlook reinforced investor enthusiasm, contributing to a broader rally across the semiconductor sector.

Broader market momentum

The AI-driven surge comes amid a wider boom in tech stocks, with chipmakers benefiting from rising investment in AI infrastructure. Earlier this week, Samsung Electronics also reached a $1 trillion valuation, highlighting global momentum in AI-related equities.

Competitive landscape

Despite AMD’s strong performance, the semiconductor industry remains highly competitive, with companies like Nvidia maintaining dominant positions in AI accelerators, while others compete across CPUs, GPUs, and custom chip designs.