AMD and Intel shares surged to record highs on Friday, fueled by booming demand for AI infrastructure and CPUs. AMD's stock climbed 9% to approximately $443, boosting its market cap to $720 billion, following robust Q1 results with a 38% revenue increase to $10.3 billion. Data center revenue surged 57% to $5.8 billion, driven by demand for EPYC processors and Instinct GPUs. Analysts have raised price targets, citing AMD's growing role in AI infrastructure.
Intel's Resurgence with Government Backing
Intel's shares rose 14% to around $124, with a market value nearing $627 billion. The rally was supported by a 7% revenue increase to $13.6 billion in Q1 and strategic partnerships, including collaborations with Google and Elon Musk's Terafab AI project. Intel's resurgence is further bolstered by a 9.9% U.S. government stake, part of an $8.9 billion investment to enhance domestic semiconductor manufacturing.
AI Wave Reshapes Chip Industry Landscape
The record-high share prices of both AMD and Intel underscore investor optimism about AI-driven computing demand. From cloud training to edge inference and data centers to PCs, AI is reshaping the entire chip industry. AMD continues to capture data center market share with its EPYC and Instinct series, while Intel aims to regain technological leadership through government partnerships and open foundry services. Analysts believe the incremental market from AI is large enough to sustain high growth for both companies in the coming years. Investors will closely watch upcoming quarterly results and AI-related order execution.