In the most recent trading session, Advanced Micro Devices (AMD) closed at $197.74, indicating a -3.46% shift from the previous trading day.
Advanced Micro Devices (NASDAQ: AMD stock) slipped nearly 3% on Thursday as investors looked past an important overseas trip by Chief Executive Lisa Su and focused instead on a more immediate problem. The plunge on Thursday came amid broader market weakness as the oil prices continue to rise and the Iran-US conflict is escalating with strikes on cargo ships in the Persian Gulf.
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Meta on Wednesday revealed four custom, in-house chips tailored for artificial intelligence-related tasks as part of the company's massive data center expansion plans.
Our position in American pharmaceutical company, Eli Lilly & Company (1.8%), was a top contributor to relative returns during the fourth quarter. Our position in global semiconductor company, Advanced Micro Devices (0.7%), was a top detractor from relative returns this quarter. We initiated a position in Johnson & Johnson (1.0%) during the quarter. We initiated a position in global semiconductor company, Advanced Micro Devices during the fourth quarter.
Our multi-factor evaluation indicates that it might be time to lessen exposure to AMD stock.
Advanced Micro Devices is upgraded to a "Strong Buy," driven by accelerating data center growth and strategic mega-deals. AMD's data center revenues surged 39% YoY, now exceeding half of total business, with management targeting >35% CAGR for 3–5 years. Key partnerships with Meta and OpenAI, plus a Nutanix alliance, position AMD to capture inference demand as AI agent adoption rises.
Shares of Advanced Micro Devices rebounded on Monday as semiconductor stocks helped lift markets from earlier lows. AMD shares rose about 2% during the session, alongside gains in other chipmakers.
Advanced Micro Devices continues to secure significant AI chip deals with major hyperscalers, reinforcing its leadership in the sector. The deals require AMD to reach $600 in order for Meta Platforms and OpenAI to fully collect 160 million warrants. The AI chip company now has a clear path to the $20 EPS target, requiring upwards of $125 billion in annual sales.
AMD (AMD) delivered its first-ever $10B+ sales quarter in Q4 2025, with 30%+ YoY revenue and 40% EPS growth, demonstrating robust operating leverage. Strong profitability expanded AMD's FCF and balance sheet flexibility, supporting future growth investments and acquisitions with $10.6B cash and minimal debt. AI infrastructure demand drives major multi-year deals with Meta, OpenAI, Microsoft, and Oracle, validating AMD's positioning despite Nvidia's dominance.
U.S. considers global AI chip export restrictions, impacting Nvidia and AMD as shares fall on regulatory risk. A 30-day U.S. waiver allows India to purchase stranded Russian crude, aiming to stabilize global oil supplies amid Middle East tensions.
AMD expands Ryzen AI 400 Series and PRO chips for next-gen AI PCs, adding Copilot+ support and up to 60 TOPS of AI compute to push deeper into the AI PC market.