AMD Defies Market Slump: The Secret Behind Its Surge

While the broader market tanks, AMD's stock rockets—here's what Wall Street missed.

Silicon underdog becomes market darling

AMD's chips are eating rivals' lunch, with investors betting big on its AI and data center plays. No surprise—when tech stumbles, semiconductors often shine.

Short sellers got burned (again)

The 'overvalued' narrative collapsed as institutional money flooded in. Another reminder: betting against innovation rarely pays off.

Finance bros scrambling to update their PowerPoints

Analysts who dismissed AMD as 'just a PC company' now frantically revising price targets. Meanwhile, crypto miners quietly stack Radeon GPUs in the background.

One cynical truth: In this market, being less terrible than everyone else counts as winning.

What’s Pushing AMD’s Price As It Goes Against The Market?

AMD’s latest upswing could be due to President TRUMP lifting the ban on the export of advanced semiconductors and other technologies to China. The move aligns with President Trump’s goal of securing a trade deal with China. Increased technological exports to China could prove profitable for AMD and other semiconductor companies.

Bank of America (BoA) recently updated its outlook on AMD. BoA increased the company’s stock price target from $175 per share to $200. BoA believes AMD’s CPU (central processing unit) market share could rise to 30% by next year.

AMD price target raised at BofA to $200 from $175 with a BUY maintained. Been a fair few raises in July (Citi, Mizuho, Wells Fargo, HSBC) but not at pace of stock's gain. $AMD pic.twitter.com/t9zbQV5zlQ

While AMD’s CPU market is expected to grow over the coming months, it is the GPU (graphics processing unit) market that may determine the stock price. Nvidia (NVDA) has seen a massive surge over the last few years as demand for GPU chips has gone up. The advent of AI platforms has propelled GPU demand globally. As AI continues to grow, so may the market for high-end GPU chips. The company’s GPU division will likely be key to the company’s future trajectory.

AMD’s Q2 results are due on Aug. 5, 2025. The report will shed more light on the company’s plans for the future and its growth over the last three months. How the market responds to the company’s Q2 report is yet to be seen.