I'm this is covered extensively somewhere but I simply don't have time so I was hoping for a quick answer. Here we go:

An intermediate player signed up for my A tier a few weeks ago and was rated 925. After the ratings update his rating went up to 937, or beyond the <935 for intermediate. The tournament is this weekend.

What rule allows or disallows him from continuing to play in AM2? Any input appreciated. Thanks.

See section 2.2 A(2) of the Competition Manual:
http://www.pdga.com/files/documents/08CompetitionManual.pdf

perfect, looks like the 2 week exception applies perfectly. Thanks Chuck.

It's still at the discretion of the TD so you could force the player higher if you felt it was necessary. I would look at how many rounds the player's rating is based on. If only few, then let him stay in the lower division. If it's based on maybe 6 or more, I would possibly move the player higher.