Advanced Micro Devices (AMD) jumped to its highest level since January, closing near $122 on Monday. The move came as discussions between the U.S. and China raised hopes of fewer curbs on chip exports. Investors are betting that better trade ties could help AMD ship more high-end chips to global buyers, especially in key markets like China. The stock has now climbed nearly 60% from its March lows, fueled by trade optimism, strong Q1 earnings, and AI momentum.
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Backing this rally, AMD recently posted stronger-than-expected Q1 2025 results, driven by solid data center growth. Earnings came in at $0.96 per share, slightly above the $0.94 forecast, while revenue rose 36% year-over-year to $7.44 billion. However, in April, the company warned of a potential $800 million hit due to tightening U.S. export rules. A favorable outcome from the talks could ease those pressures and support AMD’s near-term growth outlook.
AMD’s Technical Indicators Indicate Strength
Beyond positive trade sentiment, technical indicators suggest that AMD stock is a Buy, implying further upside from current levels.
According to TipRanks’ easy-to-understand technical analysis tool, AMD is currently on an upward trend. The stock’s 50-day Exponential Moving Average (EMA) is 107.54, while its price is $121.73, implying a bullish signal. Further, its shorter-duration EMA (20 days) also signals an uptrend.
Another technical indicator, Williams %R, helps traders determine if a stock is overbought or oversold. In the case of AMD, Williams %R currently indicates a Buy signal, suggesting that the stock is not overbought and has more room to run.
Upcoming AI Event Could Act as a Key Catalyst
AMD’s “Advancing AI 2025” event is scheduled for June 12, 2025, and could act as a catalyst for the stock. The event will highlight AMD’s AI strategy and future plans. Speakers will include AMD executives, key partners, customers, and developers from across the AI ecosystem.
Investors will be watching closely, as the event may reveal how AMD plans to compete in the fast-growing AI chip market. Any strong updates or product news could add to the recent momentum, which has already been boosted by trade optimism and bullish technical signals.
Is AMD Stock a Good Buy, Hold, or Sell?
Overall, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock based on 22 Buys and 10 Holds. The average AMD stock price target of $127.24 implies 4.53% upside potential from current levels.
