AMD stock hits all-time high, up 34% today – why AMD is Surging today and is it a buy?

Core Viewpoint - AMD has experienced significant stock growth, driven by strong demand for AI and datacenter products, alongside strategic partnerships with major companies like OpenAI and Oracle [5][14]. Financial Performance - Year-to-date, AMD shares have climbed 90%, significantly outperforming the Philadelphia Semiconductor Index's 32% gain [1][6]. - Q2 revenue reached $7.69 billion, marking a 32% increase year-over-year, with Q3 guidance set at $8.7 billion [1][11]. - AI revenue now constitutes 21% of total sales, primarily due to rapid datacenter demand [1][9]. Strategic Partnerships - AMD has secured major AI partnerships with OpenAI and Oracle, which are expected to generate tens of billions in annual revenue, with cumulative sales projected to exceed $100 billion [9][14]. - IBM has adopted AMD chips for quantum computing, utilizing FPGA processors for error correction, which enhances AMD's credibility in next-generation technologies [10][14]. Market Position and Analyst Outlook - Wall Street analysts are optimistic, with Bank of America and Jefferies setting 12-month price targets at $300, and HSBC raising its target to $310 [2][11]. - Approximately 60-65% of analysts rate AMD as a Buy, citing strong demand for AI and server chips [2][11]. - Despite Nvidia's dominance in the datacenter GPU market, AMD positions its products as viable alternatives [2][11]. Stock Performance - AMD shares surged 34% in a single day following the announcement of AI partnerships, with the stock price reaching an all-time high of $251 [5][15]. - The recent rally added approximately $80 billion to AMD's market capitalization, bringing it to around $380 billion, comparable to Intel [6][14].