AMD stock jumps 10% after Lisa Su calls Big Tech’s AI spending ‘the right gamble’

AMD shares jumped 10% on Wednesday, shrugging off weakness across tech stocks, after CEO Lisa Su said that companies spending billions on computing aren’t wasting money, but speeding up progress.

When asked about Big Tech’s aggressive AI investment pace, Lisa said, “I don’t think it’s a big gamble… I think it’s the right gamble.”

Her comments hit right as Wall Street is digesting more than $380 billion in AI-related spending across major tech companies.

According to CNBC, Lisa explained that many of AMD’s biggest clients (especially hyperscalers) have been pouring cash into compute infrastructure over the past year, and they’re now starting to see payback.

She called this an “inflection point,” saying returns are showing up faster than many expected.

Wells Fargo boosts AMD price target to $345 after analyst day

At AMD’s recent analyst event, Wall Street bros showed up, took notes, and one of them, Wells Fargo, walked away fully convinced. The bank kept its overweight rating and bumped its price target up from $300 to $345, forecasting a 45% potential upside.

Analyst Aaron Rakers backed the move with specifics: he said AMD is gaining market share in both server chips and PC CPUs, while also expanding in datacenter GPUs—and most importantly, its profit engine is just warming up.

Aaron wrote in his note that earnings could climb past $10 per share by 2027, and if growth continues, the number could hit over $20 EPS by 2030.

That’s based on a financial model AMD presented, with revenue expected to grow more than 35% per year, and the datacenter segment alone growing at a pace of over 60% annually.

He didn’t skip over risks, though. Aaron mentioned tech roadmap delays, leadership turnover, stronger competition, and overhyped investor expectations as potential potholes ahead.

While AMD rallied, the Nasdaq Composite dropped 0.3%, showing that not every tech name got the same love. The S&P 500 inched up 0.1%, but the Dow Jones Industrial Average took the spotlight, rising 423 points, or 0.9%, setting a new intraday record. That gain came as Wall Street watched Washington inch closer to ending the government shutdown.

Dow gains as banks and industrials break records

The rally in the Dow got extra fuel from financial giants. Goldman Sachs, JPMorgan, and American Express all hit fresh highs during the session.

Stocks that rise and fall with the economy, like Caterpillar, also pushed higher, helping the Dow pull further away from the tech-heavy Nasdaq.

Banking names across the market followed the same playbook; Morgan Stanley, Wells Fargo, and Bank of America also hit new highs. The Financial Select SPDR Fund (XLF), which tracks the S&P 500 financials, moved up 1%, making it clear where money was flowing.

All eyes were also on Congress. The Senate passed a spending package Monday night. Now it’s up to the House of Representatives, where Steve Scalise, the Republican House Majority Leader, said a final vote was expected around 7 p.m. ET Wednesday. If passed, that could officially reopen the government by the weekend.

On Tuesday, the split in the markets was already clear. The Dow soared more than 550 points as investors rotated out of high-priced growth stocks. Retail names like Walmart, Home Depot, and McDonald’s lifted the index.

Meanwhile, the health care sector became the top performer, with big names like Eli Lilly and Johnson & Johnson leading the charge.

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