Key takeaways
- AMD stock jumps 9% following Google Cloud announcement
- Fifth-generation EPYC chips power Google's confidential AI infrastructure
- Oppenheimer upgrades AMD with $600 stock price target
Advanced Micro Devices (AMD) stock surged more than 9% on November 9 after Google Cloud selected its fifth-generation EPYC processors to power a new artificial intelligence system, providing another major customer win for the chipmaker.
AMD shares climbed to approximately $490.93, up 9.33% by 10:40 a.m. Eastern Time, as investors reacted to the expanded partnership and a separate analyst upgrade. The rally follows AMD's recent earnings surge, which revealed nearly 100% annual growth in data center revenue.
According to AMD's November 9 announcement, its EPYC processors will serve as the host infrastructure for Google Cloud's TPU 8tx, a new AI system designed to protect sensitive information during processing.
AMD EPYC Chips Power Google's New TPU 8tx AI System
Google's TPU 8tx combines custom artificial intelligence accelerators with AMD's fifth-generation EPYC server CPUs.
The system introduces hardware-enforced confidential computing to Google's cloud TPUs, targeting enterprises that need additional protection for proprietary AI models and sensitive datasets.
AMD processors manage workload scheduling, data preparation and communication between the CPU and AI accelerators.
The architecture also uses AMD Secure Encrypted Virtualization technology to help protect information in memory and during transfers between components.
These capabilities are particularly relevant for financial institutions, healthcare organizations and enterprises deploying AI agents that process confidential information.
Google introduced TPU 8tx alongside TPU 8i Max, expanding its eighth-generation accelerator portfolio to four systems during 2026.
The partnership strengthens AMD's position as cloud providers increasingly develop specialized AI hardware rather than relying exclusively on Nvidia accelerators.
AMD Stock Rallies as Oppenheimer Raises Price Target to $600
The Google announcement coincided with an upgrade from Oppenheimer analyst Rick Schafer, who raised AMD to Outperform from Perform and established a $600 price target.
The target represented approximately 22% upside from AMD's $490.93 intraday share price, although analyst forecasts are not guarantees.
Oppenheimer expects AMD's data center revenue to grow approximately 135% in 2027, supported by expanding demand for EPYC processors and Instinct AI accelerators.
The projection follows the company's November 3 results, when total revenue climbed 45% to a record $13.38 billion.
Data center revenue nearly doubled to $8.5 billion, reinforcing the contrast between actual semiconductor sales and the broader AI valuation reset.
AMD also forecast approximately $17 billion in fourth-quarter revenue, suggesting continued expansion as cloud customers invest in new computing infrastructure.
Can AMD Challenge Nvidia as AI Chip Competition Intensifies?
The partnership highlights an important distinction in the AI hardware market: AMD can benefit from custom accelerators through its server CPUs, even when its GPUs are not selected.
Google's TPU 8tx uses Google's own accelerators, but AMD supplies the host-processing foundation required to operate them.
That arrangement provides AMD with exposure to different AI architectures, including systems built around Nvidia GPUs and competing custom chips.
The announcement comes as Nvidia faces renewed stock-market pressure following last week's technology selloff.
Nevertheless, AMD faces continued competition, demanding customer expectations and significant infrastructure costs across the sector.
The wider Wall Street recovery also supported semiconductor stocks on Monday, making it difficult to attribute AMD's entire gain to the Google partnership.
