AMD Stock Soars: Here’s Why Investors Are Piling In Today
AMD shares rocket as chip demand outpaces Wall Street's gloomiest forecasts.
The AI Gold Rush Isn't Slowing Down
Another blowout earnings report shows AMD's data center chips are eating Nvidia's lunch—or at least stealing its dessert. Revenue spikes 62% YoY as hyperscalers scramble for alternatives to overpriced GPUs.
Short Sellers Get Steamrolled
Bearish bets backfire spectacularly after CEO Lisa Su unveils breakthrough 3nm chip yields. The 15% pre-market surge leaves hedge funds nursing $2B in paper losses (not that anyone's crying for them).
The Bottom Line
While analysts debate whether this is sustainable growth or just inventory restocking, one thing's clear: in the semiconductor arms race, AMD keeps loading more bullets. Just don't mention the P/E ratio to value investors—they're still hyperventilating into paper bags.
Image source: Getty Images.
AMD stock rises on China news
The Trump administration has at least temporarily lifted export bans that prevented AMD from selling its high-end artificial intelligence (AI) processors into the Chinese market. The MOVE is a concession as Trump aims to secure a trade deal with China, and it could wind up being a significant positive sales and earnings catalyst for AMD. While increased potential for a trade deal to be reached between the two countries is a beneficial development for AMD, the significance that the AI race holds for both countries along national security and economic lines suggests that substantial geopolitical risk factors are still on the table.
Is AMD stock headed to $200?
Before the market opened this morning,published new coverage on AMD and raised its one-year price target on the stock from $175 per share to $200 per share. BofA's analysts think that the chipmaker's share of the central processing unit (CPU) market could rise from 20% in 2023 to 30% next year.
In addition to taking market share fromin the CPU space, Bank of America's analysts noted that AMD's processors are commanding a 17% pricing premium compared to offerings from its competitor. While AMD's performance in the CPU space will continue to be a key factor in the company's performance, sales results for its graphics processing units (GPUs) for AI data centers will likely be the biggest factor shaping the stock's next moves when the company reports its Q2 results on Aug. 5.
