Advanced Micro Devices (AMD) stock has gained in the past week and looks to be on the path to $275 by the end of January. AMD continues to expand its enterprise partnerships, positioning itself for significant growth in the data center market. Additionally, its AI offerings and product updates of late have driven bullish momentum, helping the stock rally.

On Thursday, AMD released its Adrenalin 26.1.1 driver. This new update comes with an AI bundle that makes it easy for anyone to set up an AI system on a device that utilizes the company’s Ryzen CPUs and Radeon GPUs. AMD claims that its AI bundle allows users to set up and install all the resources needed for an AI system with just one click. Investors welcomed the update and drove shares higher, with the stock ticking up 2% on Thursday.

In addition, AMD’s recent partnerships are also a driver for its success. The company has been inking deals with enterprises globally that include the likes of Tata Consultancy Services (TCS), HPE, Oracle, Google, Microsoft, Alibaba, and IBM, among others. AMD’s Tata Consultancy Services specifically is a driver as it will help to develop industry-specific AI and generative AI solutions, combining TCS’s global services with AMD’s computing and AI products. Analysts identify Venice EPYC, built on TSMC’s 2 nm process, as a likely driver of CPU market-share gains and improved margins.

Also Read: Trump Sues JPMorgan (JPM), CEO Jamie Dimon for $5B

Over the past nine months, AMD stock has jumped more than 200% from its early-April lows. Several Wall Street firms believe that the company has what it takes to serve as an alternative to Nvidia. Additionally, even though it faces intense competition from Intel and Arm Holdings, AMD continues to capitalize on its strong position in the server CPU market. Its deals with both OpenAI and Oracle have driven investor optimism, suggesting that there is further growth ahead.

As for AMD forecasts, several firms suggest now is a good time to buy AMD, forecasting gains ahead. KeyBanc and Bernstein increased their AMD price targets, reflecting strong demand for the semiconductor developer’s server CPUs and optimism around its AI investment. KeyBanc reiterated its “Overweight” rating and $270 price target, pointing to strong server CPU demand. The firm noted that hyperscalers were already securing 2026 capacity, with AMD nearly sold out of server CPUs through the end of that year. Furthermore, Bernstein raised its price target on the stock from $200 to $225.