AMD is gaining in AI chip race

Advanced Micro Devices (AMD) is gaining traction in the AI chip market, fueled by strong demand for its GPUs and rising data center revenue. In Q1 2025, AMD’s Data Center segment posted $3.67 billion in revenue, up 57% year-over-year, driven by robust EPYC CPU and Instinct GPU sales. The stock has climbed 14% year-to-date and soared 60% over the past three months.

Building on this rally, Mizuho Securities’ 5-star analyst Vijay Rakesh raised his price target on AMD from $135 to $152, implying about 10% upside, and maintained a Buy rating. While AMD continues working to close the gap with Nvidia, Rakesh remains bullish on its long-term AI potential.

On June 30, 2025, ARK Invest, led by Cathie Wood, purchased 356,275 AMD shares—worth $51.24 million—across its ARKK, ARKW, and ARKF ETFs, following up on a June 23 buy of 130,256 shares. The move signals ARK’s strategic shift toward high-growth semiconductor assets, particularly in AI. Despite this bullish positioning, AMD shares slipped 1.33% on July 1 amid investor concerns over Ryzen core counts and caution ahead of Q2 earnings.