Bank of America-Merrill Lynch lifted its rating two levels to "buy" from "sell" and its price target to $6 from $2.50, while Canaccord Genuity raised its rating to "buy" and increased its price target to $5 from $3.
The stock was 10 per cent higher at $4.38 as of 2:54 pm ET.
Canaccord says AMD's performance will grow as it weans itself away from a dependence on PCs and looks at growth in gaming consoles.
AMD is set to report second quarter results one week from today. Analysts are predicting a loss of 13 cents per share on revenue of $1.11 billion. A year ago, the Sunnyvale, California-based company turned a six cents per share profit on $1.41 billion in revenue.
In its first quarter, AMD recorded a 13 cents per share loss on $1.09 billion in revenue.
Shares have been on a tear so far this year, soaring 84 per cent.