Nvidia's PC Ambush Sinks AMD Shares 3%, But Barclays and TD Cowen See Bigger Gains Ahead

When Nvidia took the Computex stage in Taipei on June 1 and unveiled RTX Spark — an Arm-based AI superchip for Windows laptops — AMD’s stock immediately felt the heat. Shares slid roughly 3% on the day, touching $500.63 before recovering slightly, as investors digested the implications of Nvidia’s direct assault on the premium PC market. AMD closed the session down $15.47 from the prior close, while Nvidia itself jumped $7.27 to $218.41 and Arm Holdings surged $46.56 to $399.85 on expectations that the Windows-on-Arm push would benefit the architecture’s ecosystem. Intel also suffered, dropping $4.86 to $109.82.

Yet the very same day, two major investment banks doubled down on AMD’s long-term prospects. Barclays lifted its price target by a third to $665 from $500, and TD Cowen raised its target to $600 while maintaining a buy rating. The rationale: AMD’s addressable market has doubled to $120 billion in just six months, fuelled by the rise of agentic AI, and the company remains the leading merchant alternative to Nvidia in data center silicon. The stock’s 131% year-to-date rally, which has taken it just shy of its 52-week high, reflects that momentum — even as the P/E multiple of 164 already prices in considerable growth.

That growth was on full display in the first quarter. AMD reported revenue of $10.25 billion, up 38% year over year, with data center revenue climbing 57% to $5.775 billion — the single largest segment. Client and Gaming contributed $3.605 billion, while Embedded added $873 million. Net income reached $1.383 billion, or $0.84 per diluted share. For the second quarter, management guided revenue of roughly $11.2 billion, which would represent a 46% annual increase. High-profile partnerships with Meta and OpenAI, both deploying AMD’s Instinct GPUs, underpin the data center narrative.

Should investors sell immediately? Or is it worth buying AMD?

To reinforce its consumer footprint, AMD also used Computex to unveil two enthusiast-focused processors. The Ryzen 7 7700X3D for the AM5 platform arrives on July 16 at $330, while a 10th-anniversary edition of the Ryzen 7 5800X3D for AM4 launches on June 25 at $350. Internal testing shows a 10% performance advantage over comparable rivals in DDR4 gaming environments — a bid to hold market share in high-end gaming even as the industry tilts toward AI-centric architectures.

Behind the scenes, AMD is scaling its infrastructure for the next wave of AI computing. Its next-generation EPYC processor, code-named “Venice,” has entered production on TSMC’s 2nm process in Taiwan, with future output also planned for TSMC’s Arizona facility. The company has committed more than $10 billion to Taiwan’s semiconductor ecosystem to expand advanced packaging capacity for AI hardware. The Helios rack-scale platform, pairing Venice with Instinct MI450X GPUs, is scheduled to begin deployments in the second half of 2026 across multi-gigawatt data center builds.

Nvidia’s RTX Spark — developed with MediaTek and Microsoft, offering up to one petaflop of AI performance and 128 GB of unified memory — will power thin Windows laptops and compact desktops from ASUS, Dell, HP, Lenovo, Microsoft Surface, MSI, Acer, and GIGABYTE starting this autumn. But no final pricing, shipment volumes, or revenue targets have been disclosed, leaving analysts to debate whether the move is an early ecosystem play or a genuine commercial threat.

For now, AMD’s stock faces a test of narrative discipline: defend the client-PC franchise while convincing investors that data center CPUs, Instinct accelerators, and next-generation packaging are the real story. The analyst upgrades from Barclays and TD Cowen suggest the market’s long-term calculus remains intact, even as Nvidia’s Spark momentarily dims the share price.

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