AMD Stock Is Up 10% This Week: What's Going On?

Advanced Micro Devices Inc AMD shares are trading higher by 1.3% to $128.10 during Tuesday’s session and over 10% since Monday’s session open. This surge is largely attributed to unconfirmed rumors of a “GPU win” with Amazon Web Services and a positive analyst rating update from Piper Sandler, which raised its price target for AMD.

What To Know: The momentum follows Piper Sandler analyst Harsh Kumar maintaining an “Overweight” rating and increasing the price target to $140, citing AMD’s product launches and anticipated AI business growth. Kumar also highlighted AMD’s robust relationship with Amazon, a multi-level customer for both CPUs and GPUs.

CNBC’s David Faber on Monday further fueled speculation, reporting on “Squawk On The Street” that unusual momentum in AMD shares appeared to be driven by an unconfirmed rumor about a GPU deal with AWS. This potential expanded partnership with Amazon seems to be a primary catalyst for the stock’s strong performance Tuesday.

Amazon previously disclosed an $84.4 million stake in AMD following the chipmaker’s acquisition of ZT Group International, a company in which Amazon held a stake.

Price Action: The current session volume stands at 47.680 million Tuesday morning, with a 100-day average volume of 41.963 million. According to data from Benzinga Pro, AMD has a 52-week high of $187.28 and a 52-week low of $76.48.

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How To Buy AMD Stock

By now you're likely curious about how to participate in the market for Advanced Micro Devices – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Advanced Micro Devices, which is trading at $128.10 as of publishing time, $100 would buy you 0.78 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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