Advanced Micro Devices shares rose 4.3% in morning trading Wednesday after Piper Sandler maintained its positive outlook on the chipmaker.

Piper Sandler kept its Overweight rating and $600 price target on AMD following the company's third-quarter pre-quiet period call held Tuesday. Analyst David O'Connor said AMD investor relations delivered a reassuring message, with CPU and GPU product ramp-ups progressing as planned.

O'Connor said demand continues to surpass available supply. The analyst added that supply capacity is adequate to support the company's current guidance and may enable AMD to exceed expectations.

The Piper Sandler note pointed to several growth drivers that supported investor confidence. The firm discussed the Helios server ramp-up, Venice CPUs, Optics scale-up architecture, HBM supply and memory dynamics, margins, and client and gaming segments. O'Connor said these programs remain on track with supply positioned to support guidance and potentially outperform.

Bank of America forecast that the semiconductor industry's total addressable market will grow from $1.7 trillion in 2026 to $3.2 trillion by 2030.