Advanced Micro Devices, Inc. (AMD) stock price has surge by 3.10% in the pre-market hours despite closing 3.29% lower on Friday, July 24, 2026. AMD’s latest price surge comes after UBS raised its stock price target to $730. Let’s discuss if AMD can sustain its rally and continue on a bullish trajectory.
Can AMD Continue Its Price Rally?
AMD is one of the biggest chip manufacturers in the world. UBS is one of many Wall Street firms that have increasingly become bullish on the company’s stock price. AMD recently revealed a host of new AI chips that the company claims can even outperforms Nvidia’s offerings. The product launch may have been the catalyst behind UBS’s decision.
AMD is also in a unique position because it caters to both GPU (Graphics Processing Unit) and CPU (Central processing Unit) needs. While generative AI is more GPU demanding, the coming of agentic AI will flip the tide into a more CPU-focussed trend. Many, including Intel leadership, believe that the coming of agentic AI will bring CPU manufacturers to the forefront. AMD could greatly benefit from such a development.
AMD is also set to release its quarterly earnings report on August 4, 2026. Experts anticipate the company to report record earnings and revenue, just like the first quarter of this year. Anticipation of high revenue is likely another reason behind Wall Street raising AMD’s stock price target.
Risks You Should Know
While AMD has had quite a bullish ride, there are some risks you should be aware of. Firstly, there is a chance that inflation in the US may increase for the month of July due to rising oil prices. high inflation could lead to investors liquidating some of their holdings.
Also Read: Nvidia CEO Warns Of AI Bubble: Here’s The Challenge
Secondly, many analysts have claimed that we could be living in an AI bubble. If so, we could see a massive market meltdown, with AI-based companies, such as AMD and Nvidia, seeing massive losses. While it is difficult to say with certainty, one should always exercise caution with their investments.