Advanced Micro Devices (AMD) shares rose 2.89% in premarket trading, reaching $133.32, following an upgrade from Melius Research. The firm raised AMD's stock rating from 'hold' to 'buy' and set a new price target of $175, citing advancements in AI chip capabilities. Analyst Ben Reitzes noted AMD's progress in the AI sector, challenging NVIDIA's market position, and highlighted recent AI data center system showcases as key factors. AMD's stock has delivered a 7.28% year-to-date return, outperforming the S&P 500. The company's strategic focus on AI, bolstered by partnerships with HCLTech and Keysight Technologies, positions it for future growth despite market volatility. Reitzes expressed optimism about AMD's AI inferencing platform but advised caution regarding stock fluctuations.