Advanced Micro Devices (AMD) stock surged nearly 7% on Monday, kicking off the final week of March on a high note. The rally comes amid reports that President Donald Trump may delay the planned April 2 tariffs on the semiconductor sector. However, during multiple events on Monday, Trump reiterated that tariffs would be introduced soon. Meanwhile, chip powerhouse Nvidia (NVDA) climbed over 3%, while the tech-focused Nasdaq Composite advanced 2.3%.
AMD specializes in high-performance computing, graphics, and AI solutions.
What’s Behind the Surge?
Overall, tech and chip stocks gained momentum on Monday following a report from The Wall Street Journal stating that the White House is considering a sector-based approach to reciprocal tariffs. According to the report, industries like automobiles, semiconductors, and pharmaceuticals may be excluded from the proposed trade measures.
Despite everything, the Monday surge provided some relief for investors after AMD shares tumbled 30% over the past six months, largely due to sluggish demand for personal computers and traditional servers and tariff uncertainties. Additionally, the company has faced challenges competing with Nvidia’s stronghold on AI accelerators.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ Bulls Say, Bears Say tool offers a quick snapshot of analysts’ viewpoints on AMD stock. Users looking for a concise breakdown of bullish and bearish sentiments can leverage this tool for valuable insights.
Bulls are optimistic that AMD is experiencing strong demand for its AI GPUs, securing major customer orders. Moreover, its PC CPU market share is also expanding, driven by performance gains and new partnerships. On the other hand, bears noted that AMD shares may face range-bound trading as investors evaluate the MI350X rollout and the possibility of oversupply in client CPUs.
Is AMD a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on AMD stock, based on 25 Buys, 11 Holds, and 1 Sell assigned in the last three months. The average share price target for AMD is $147.81, which implies an upside potential of 30% from current levels.
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