AMD Shares Jump as Analysts Predict GPU ‘Snapback’ and AI Surge

Advanced Micro Devices (AMD) saw its stock climb nearly 9% on Monday after analysts at Piper Sandler issued a bullish note forecasting a “snapback” in its GPU business by Q4.

The rally came after AMD unveiled its new Instinct MI400 AI chips and a full-server rack system called Helios, which allows thousands of chips to work together. The launch is aimed at large-scale AI operations like cloud computing and language model development. CEO Lisa Su, joined onstage by OpenAI’s Sam Altman, called it a major step forward in AI computing.

Piper Sandler analysts say the new product line—especially Helios—is “pivotal” for AMD’s AI strategy. They believe the company will move past the bulk of the $800 million in charges related to U.S. export restrictions to China by the end of the year.

In response, Piper Sandler raised AMD’s price target from $125 to $140, noting that the chipmaker’s aggressive roadmap could help it regain lost ground in the competitive GPU space. The stock finished above $126, its highest level since before Trump’s tariff announcements in January.

​Bottom line: Analysts are betting that AMD’s AI pivot—and its ability to absorb short-term China-related losses—will pay off by year’s end. With new hardware on deck and investor optimism rising, AMD could be poised for a powerful Q4 rebound.