AMD $AMD jumps 12% as Intel's Q2 guide resets AI CPU demand bets

Advanced Micro Devices $AMD climbed more than 12% on April 24 after Intel's quarter convinced Wall Street that AI spending is broadening beyond GPUs. CNBC reported that the move came without company-specific news from AMD itself. The catalyst was a fast repricing of CPU demand after Intel beat estimates, guided above consensus for the second quarter and triggered a wave of analyst upgrades across the processor group.

CNBC said D.A. Davidson upgraded AMD to buy from neutral and lifted its target price to $375, implying about 22% upside from Thursday's close. The note argued that CPUs are becoming a necessary layer in agentic AI workloads rather than a legacy attachment to GPU-heavy spending. That matters because the AI trade in 2026 has mostly rewarded the most obvious accelerator winners. A double-digit move in AMD on a peer's print suggests investors are starting to price a wider hardware stack.

Intel's earnings release provided the hard numbers behind that read-through. Intel reported Q1 revenue of $13.6B, up 7% year over year, data-center revenue of $5.1B, up 22%, and Q2 revenue guidance of $13.8B to $14.8B with non-GAAP EPS of $0.20. CFO David Zinsner said Intel delivered "robust Q1 results," while CEO Lip-Bu Tan said the next wave of AI is increasing demand for CPUs, wafer capacity and advanced packaging.

AMD share move: more than 12% on April 24

Intel Q1 revenue: $13.6B, up 7% year over year

Intel data-center revenue: $5.1B, up 22%

Intel Q2 guide: $13.8B to $14.8B revenue, $0.20 non-GAAP EPS

D.A. Davidson AMD target: $375

The broader stake is sector rotation inside semiconductors. CNBC also cited Citi saying Intel now expects double-digit server CPU unit growth in 2026, versus only slight growth it had anticipated six months earlier. If that demand picture holds, the market will have to spread AI capital-spending assumptions across CPU vendors, networking suppliers and packaging capacity instead of treating the theme as a one-company trade.

What to watch next is whether AMD's own results validate the read-through. Investors will look for stronger server mix, firmer gross margins and a cleaner link between inference demand and 2026 revenue guidance. A one-day 12% rally can fade quickly if the CPU rebound stays confined to Intel's quarter. If AMD confirms the shift, this move will look less like sympathy trading and more like the start of a broader rerating.