AMD Shares Jump 13% After Google Picks Its EPYC Chips to Host New TPU 8tx System

The gain, of $59.54 a share from Friday's close of $449.04, far outpaced the S&P 500's rise of about 2.3% on the day. Trading volume was about 50.7 million shares, according to figures reported by JKN. Even after the jump, AMD remains roughly 22.8% below its 52-week high of $658.52.

For AMD, the Google decision matters because it shows the company winning a role inside a rival accelerator platform rather than only competing with it. The TPU is Google's own AI chip, and the 8tx is described as the first cloud TPU platform with hardware-based confidential computing, which keeps data protected while it is being processed. In the system, AMD's EPYC processors handle data preparation and supporting workloads and help protect sensitive models and customer data, according to a GuruFocus report on the announcement. The platform is aimed at AI inference, fine-tuning and agentic applications.

AMD has said more than 10 large hyperscalers and AI labs use EPYC processors, including in systems built around Nvidia GPUs, its own Instinct GPUs and custom AI chips. The Google arrangement extends years of collaboration between the two companies on cloud computing and security.

The shares had risen only about 4% in morning trading after the announcement, suggesting that the broader rebound in technology stocks did much of the later work. US indexes rallied on Monday as falling oil prices eased inflation worries, with the Nasdaq Composite up 2.73%, even as Nvidia fell on its board's investigation into chief executive Jensen Huang.

Oppenheimer also lifted sentiment. The broker upgraded AMD to Outperform from Perform with a $600 price target, about 34% above Friday's close. Analyst Rick Schafer wrote in a Sunday note to clients that the firm was raising estimates after AMD's earnings call and a fireside chat with management, and called the company a "durable supplier of AI compute" with customer wins that span several product generations. Oppenheimer forecasts AMD's data centre revenue will grow 135% in 2027.

AMD's data centre revenue rose 97% to $8.5 billion in the third quarter. According to LSEG data, 48 of the 56 analysts covering the stock rate it buy or strong buy.

The company's next milestones are on the GPU side: it plans to ramp up its partnership with Anthropic in the first quarter of 2027 and to roll out its MI500 GPUs in the second half of that year.