AMD's upcoming AI innovations mark its most significant product cycle yet, especially with the Instinct MI400 and Helios system debut catapulting its capabilities into industry leader Nvidia's turf. However, escalating macroeconomic risks - spanning tariff pressures, inflationary resurgence, and geopolitical instability - threaten to disrupt the secular AI spending cycle that underpins AMD's upside prospects. And the stock's gradual 64% upsurge since the announcement of reciprocal tariffs in April corroborate a backdrop where investors may be underappreciating the impending headwinds.
New AI chips should help the company carve out a lasting niche in the market, according to Melius Research.
Positive gamma exposure is building around key upside strikes like $130 and $150, suggesting market makers may be forced to chase if AMD keeps climbing. Dark pool data shows steady accumulation, with buy ratios and DIX trends both turning solidly bullish over the past few weeks. Fundamentally, AMD's product pipeline is strong, and while risks remain, sentiment and positioning indicate the market's leaning bullish.
Advanced Micro Devices (AMD) closed at $128.24 in the latest trading session, marking a +1.14% move from the prior day.
Though Wednesday was a flat day for the stock, Advanced Micro Devices Inc. NASDAQ: AMD looks likely to continue adding to a rally that has logged an impressive 65% since April. The strong uptrend has been characterized by a run of higher lows and higher highs, exactly what Wall Street wants to see after months of concerning underperformance.
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Advanced Micro Devices client revenue jumps 67.7% on strong Ryzen CPU demand and AI PC momentum, raising growth expectations.
Shares of Advanced Micro Devices ( NASDAQ:AMD ) gained 10.50% over the past month, bringing the stock's year-to-date gain to 5.11%.
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I'm maintaining Advanced Micro Devices, Inc. with a Buy rating, as the stock gains momentum and the market recognizes its AI potential beyond being Nvidia's runner-up. AMD's new MI400 and MI355X chips, competitive pricing, and major partnerships position it to capture meaningful AI market share as hyperscalers diversify suppliers. Technical indicators show strong momentum and a clear uptrend. As long as AMD holds above $120-$125, I expect further upside in the near term.
I maintain a Strong Buy on Advanced Micro Devices, Inc., expecting AMD stock to reach $200 within 1-2 years, driven by operational growth and valuation expansion. AMD delivered robust Q1 results with 35.9% YoY revenue growth to $7.44B and a 54.8% EPS jump to $0.96, beating consensus despite lowered Q3 estimates. Despite a $1.5B FY25 sales hit from China export controls, soaring Data Center (57% YoY) and strong Client segment (68% YoY) growth showcase underlying operational strength.