Advanced Micro Devices Inc (AMD) is having a moment. The chipmaker's stock trended higher Wednesday, climbing 0.98% in premarket trading to $508.81, as investors continued piling into AI-linked semiconductor names against a firmer broader market backdrop.

The Dow Jones rose 0.45% on Tuesday, while the S&P 500, Nasdaq, and Russell 2000 also moved higher. But the real action was in chips: the PHLX Semiconductor Sector closed up nearly 6%.

NVIDIA's Rosy Outlook Lifts All Boats

A big reason for the sector-wide optimism? NVIDIA Corp (NVIDIA) CEO Jensen Huang dropped some encouraging comments. He described AI infrastructure demand as robust and said Taiwan's semiconductor supply chain faces a "very busy second half" as NVIDIA ramps production of its Vera Rubin platform, which combines Vera CPUs with Rubin GPUs. Huang also noted that the U.S. approved licenses allowing NVIDIA to sell H200 chips to Chinese customers, though shipments haven't started yet.

For AMD, that's a positive read-through. If the AI spending spree continues—and Huang's comments suggest it will—AMD stands to benefit as a key alternative to NVIDIA in the data center GPU market.

OneQode Deal Expands AMD's AI Reach

Adding to the momentum, OneQode announced plans to deploy AMD Instinct MI355X GPUs and eventually integrate AMD's Helios rack-scale platform as part of its AI infrastructure expansion across Europe and Asia-Pacific. The deployment will use AMD's ROCm open software stack to support large-scale AI training and inference workloads.

This partnership follows OneQode's previously announced 110MW AI infrastructure agreement with Bitzero in Norway and targets enterprise AI, sovereign AI, and frontier-model deployments. For AMD, it's another notch in the belt—growing exposure to AI GPUs and accelerated computing continues positioning the company as a key beneficiary of expanding AI infrastructure spending.

Earnings and Analyst Outlook

Looking ahead, the next major catalyst for AMD stock arrives with the estimated August 4, 2026 earnings report. Here's what the Street is expecting:

• EPS Estimate: $1.55 (up from $0.48 a year ago)
• Revenue Estimate: $11.28 billion (up from $7.68 billion a year ago)
• Valuation: P/E of 168.0x—a premium relative to peers, reflecting high growth expectations

Analyst consensus remains a Buy, with an average price target of $459.96. Recent analyst moves include:

• Evercore ISI Group: Outperform, target raised to $579.00 (May 19)
• Citigroup: Neutral, target raised to $460.00 (May 18)
• B of A Securities: Buy, target raised to $500.00 (May 13)

With the stock already trading above the average target, the bulls are betting that AMD's AI story still has room to run. Whether it can justify that 168x P/E will depend on how the second half of 2026 plays out—and whether the AI infrastructure boom keeps its promise.