<div id="readability-page-1"><div><p><span id="RegularArticle-QuoteInBody-1">Intel's<span><span id="-WatchlistDropdown"></span></span></span> latest earnings report showed big demand for central processing units, or CPUs, as companies rush to build out their artificial intelligence capabilities, sending its stock surging. The numbers led investors to scoop up shares of another major chipmaker: <span id="RegularArticle-QuoteInBody-2">Advanced Micro Devices<span><span id="-WatchlistDropdown"></span></span></span>.</p><p>AMD shares soared more than 12% on Friday as Wall Street analysts were caught off guard by Intel's CPU performance — which they believe will translate to other big CPU makers.</p><p>&#34;We figured CPUs were the next big bottleneck, but Intel's results indicate that is already translating to very significant upside,&#34; D.A. Davidson analyst Gil Luria wrote for in a Friday note. &#34;The CPU is reinserting itself as an indispensable foundation of the AI era, and the once sleepy CPU market has taken off as agentic workloads shift compute needs&#34; beyond graphics processing units produced by companies such as Nvidia.</p><p>Luria upgraded AMD to buy from neutral and hiked his 2026 revenue and gross profit margins. He also hiked his price target on the stock to $375, implying upside of 22% from Thursday's close.</p></div><div><p>This comes off the back of Intel also issuing stronger-than-expected guidance for the second quarter. Other analysts on the Street took notice as well.</p><p>&#34;Intel now expects double digit server CPU unit growth in 2026, up from their prior expectations of only slight growth six months ago,&#34; Citi analyst Atif Malik wrote on Friday. He also upgraded the stock to buy from neutral.</p><p>Wall Street sees CPU makers and data center gear providers improving as a group, on the Intel news, with AMD front and center.</p><p>&#34;Based on signs of better participation in high AI infrastructure growth, we are significantly increasing our price target to align INTC's target multiple with the company's AI infrastructure peers AMD, MRVL, CRDO, and ALAB (all Buy rated),&#34; Suji Desilva of Roth wrote Friday.</p><p>Barclays' Tom O'Malley, meanwhile, wondered whether Intel could lose market share to rival AMD.</p><p>&#34;Our downside case of $40 is based upon 47x our downside CY27 PF EPS of $0.85, which assumes greater share loss to AMD,&#34; he wrote, citing other factors as well. Intel traded around $81 early Friday. </p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

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<p>AMD shares surged over 12% following Intel's strong earnings report, which highlighted significant demand for CPUs amid a growing focus on artificial intelligence. Analysts, including D.A. Davidson's Gil Luria, noted that Intel's performance suggests a robust future for CPU makers, prompting upgrades for AMD's stock rating and price target. Other analysts echoed this sentiment, predicting improved growth for CPU manufacturers and data center providers. Intel's guidance for double-digit growth in server CPU units further fueled optimism in the sector, positioning AMD as a key player in the AI infrastructure market.</p>

- Intel's latest earnings report highlighted strong demand for CPUs, driven by companies advancing their AI capabilities, leading to a surge in Intel's stock.  
- This performance also boosted shares of Advanced Micro Devices (AMD), which rose over 12%, as analysts adjusted forecasts expecting significant growth in the CPU market.  
- Intel anticipates double-digit growth in server CPU units for 2026, prompting upgrades from several analysts, while concerns about potential market share loss to AMD remain.

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AMD shares soar 12% on no company news. Here's what has investors so excited