What's Going On With AMD Stock?

by Henry Khederian Benzinga Staff Writer

Zinger Key Points

Shares of Advanced Micro Devices are surging Friday morning.
This week's rally is driven by rumors of a major AWS GPU deal and bullish Wall Street sentiment.
Get access to the leaderboards pointing to tomorrow’s biggest stock movers.

Shares of Advanced Micro Devices Inc AMD rose at the open Friday morning, continuing a strong week with a 12.5% gain. This week’s upward momentum is partly fueled by unconfirmed rumors of a major “GPU win” with Amazon Web Services and a bullish outlook from Wall Street.

What To Know: Earlier in the week, the stock began its rapid ascent following a report from CNBC highlighting market speculation about an expanded partnership with Amazon’s cloud computing arm.

This news was compounded by a positive assessment from Piper Sandler analyst Harsh Kumar, who reiterated an “Overweight” rating on AMD and increased the price target to $140.

Kumar pointed to AMD’s upcoming product launches and its burgeoning AI business as key drivers for future growth, underscoring the chipmaker’s robust, multi-level relationship with Amazon.

This combination of events has ignited investor optimism. A potential deal with a market leader like AWS signifies a massive future revenue stream and a significant foothold in the competitive AI and data center markets.

Analyst upgrades often act as a strong buy signal, boosting investor confidence. This speculation on future earnings and strengthened competitive positioning against rivals is a primary catalyst for the stock’s impressive weekly performance. Amazon already holds a disclosed $84.4 million stake in AMD.

Investors can gain exposure to AMD by investing in the VanEck Semiconductor ETF SMH.

How To Buy AMD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Advanced Micro Devices’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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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