Advanced Micro Devices Inc. (AMD) stock rose more than 1% in Friday's premarket session, extending gains after the stock surged 7.97% in the previous trading day. The move came even as broader market futures were mixed, with Nasdaq futures down 0.18% and S&P 500 futures up 0.19%.

Analyst Upgrades Fuel Bullish Sentiment

Recent analyst commentary has helped support AMD's rally as investors grow more optimistic about the company's AI opportunity.

Citi analyst Atif Malik upgraded AMD to Buy from Neutral and raised his price forecast to $575 from $460. Malik said the market has yet to fully recognize AMD as a "legit second source in the GPU market."

Malik said AMD is "poised to win lion's share" of GPU business at Meta Platforms Inc. (Meta (META)), citing the company's custom MI450 chips, which Citi believes could provide Meta with a lower total cost of ownership than merchant GPU alternatives.

The firm also pointed to AMD's previously announced six-gigawatt, four-year deal with Meta, which includes a 160 million-share warrant and is expected to begin ramping with an initial one-gigawatt tranche in the second half of 2026 and into 2027.

Citi now projects AMD's AI revenue will reach $33 billion in 2027 and $50.8 billion in 2028. The firm also increased its estimate for the 2030 CPU market to $136.7 billion.

The bullish outlook follows another positive update from Bank of America Securities on Thursday. The firm reiterated its Buy rating and raised its price forecast to $560.

Other Wall Street firms remain constructive. Barclays carries a $665 price forecast, while TD Cowen recently increased its forecast to $600, reinforcing expectations for continued upside despite AMD's strong run.

Technical Picture Remains Bullish

AMD continues to trade in a well-established uptrend. The stock sits 2.8% above its 20-day simple moving average of $478.88 and remains comfortably above its 50-day, 100-day, and 200-day moving averages.

The moving-average structure remains positive. The 20-day average is above the 50-day average, while the 50-day average remains above the 200-day average. That pattern typically signals a healthy long-term trend.

However, momentum indicators suggest the rally may be cooling. The moving average convergence divergence, or MACD, remains below its signal line, indicating buying pressure has eased compared with earlier stages of the advance.

AMD is also approaching a key resistance area near $546.50, which aligns with its 52-week high zone. A breakout above that level could open the door for another leg higher, while failure to clear resistance could lead to a period of consolidation.

AI Opportunity Remains Key Growth Driver

AMD designs semiconductors for personal computers, gaming consoles, and data centers. The company has steadily expanded its presence in AI infrastructure, where it competes with rivals including NVIDIA Corp. (NVIDIA (NVDA)).

The company also supplies chips used in gaming platforms from Sony Group Corp. (Sony (SONY)) and Microsoft Corp. (Microsoft (MSFT)), providing additional exposure to console refresh cycles.

Investors remain focused on AMD's efforts to gain market share in AI accelerators, one of the fastest-growing segments of the semiconductor industry.

AMD Earnings Outlook

AMD's next major catalyst is its expected earnings report on Aug. 4.

Wall Street expects earnings of $1.55 per share, up from 48 cents a year earlier. Revenue is projected to reach $11.28 billion, compared with $7.68 billion in the prior-year period.

The stock currently trades at about 162.8 times earnings, reflecting high investor expectations for future growth.

AMD Price Action

AMD Stock Price Activity: Advanced Micro Devices shares were up 1.34% at $495.00 during premarket trading on Friday, according to market data.