AMD Set to Expand AI Chip Market Share, Helios Rivals NVIDIA—Analysts Bullish

Advanced Micro Devices, Inc. stock traded higher on Friday, driven by a broader risk-on sentiment in semiconductor stocks.

The Nasdaq rose 0.16%, the S&P 500 gained 0.33%, the Russell 2000 climbed 0.66%, and the Dow Jones Industrial Average advanced 0.55%.

BMO Turns Bullish on AMD

A bullish analyst report from BMO Capital Markets added positive sentiment for the chipmaker. Analyst Harsh Kumar initiated coverage on AMD on Friday with an Outperform rating and a $550 price target.

Kumar noted that AMD is transitioning into a full-scale AI infrastructure provider, with a product portfolio spanning GPUs, CPUs, DPUs, and full-rack AI systems.

The analyst highlighted AMD's Helios AI rack as the closest competitor to NVIDIA Corp.'s NVL72. BMO expects Helios to begin shipping in September 2026.

According to Kumar, AMD has already secured multiple Helios design wins, including with OpenAI, Meta Platforms Inc., and Anthropic. He expects AMD to gain additional AI infrastructure market share, providing another growth driver.

The stock trades at a price-to-earnings ratio of 119.8, reflecting a premium valuation. AMD holds a consensus Buy rating with an average price target of $590.09. On August 6, Argus Research maintained a Buy rating and raised its target to $625. Rosenblatt also maintained a Buy rating and raised its target to $700.

Technical Analysis

AMD maintains a long-term uptrend despite mixed short-term technical signals.

The stock trades 1.4% below its 20-day simple moving average (SMA) and 7% below its 50-day SMA. However, it remains 7.2% above its 100-day SMA and 43.8% above its 200-day SMA.

The 20-day SMA is below the 50-day SMA, indicating recent weakness. Still, the 50-day SMA remains above the 200-day SMA, keeping the long-term trend bullish.

AMD's relative strength index (RSI) stands at 46.05, suggesting neutral momentum—the stock is neither overbought nor oversold.

Key resistance sits near $530, with support around $463.

AMD has gained 188.16% over the past 12 months. The stock reached a 52-week high of $584.73 in June before pulling back in July.

A sustained move above the 20-day and 50-day SMAs could reinforce the bullish outlook. However, a break below $463 could shift focus toward the 100-day SMA.

Edge Ranking

AMD scores strongly on multiple Edge metrics. Its momentum score is 97.93, quality score is 94.05, and growth score is 94.96.

However, its value score is just 4.73. This combination points to strong growth and momentum, but valuation remains rich.

Top ETF Exposure

AMD is a major holding in the iShares Semiconductor ETF, with a weight of 8.10%. It also accounts for 7.74% of the CoreValues America First Technology ETF and 8.31% of the ARK Next Generation Internet ETF.

AMD's significant weight means major fund inflows or outflows from these ETFs could create buying or selling pressure on the stock.

AMD Price Action

Advanced Micro Devices stock was up 1.60% at $476.96 at the time of writing on Friday.