Advanced Micro Devices (AMD) stock rallied on Thursday after CEO Lisa Su praised efforts to create “American manufacturing and resiliency” in an interview with Bloomberg. According to the CEO, the shift to bringing chip production to the U.S. is an important one. It allows for supply lines that face less disruption, which she noted the industry learned about the hard way during the COVID-19 pandemic.
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Even with this praise, Su said the shift to U.S. manufacturing will come with some negatives, including increased prices. The AMD CEO stated that the cost to manufacture processors in America will be “more than 5% but less than 20%” higher and argued it’s a “very good investment.”
Su’s comments about American manufacturing came at the same time President Donald Trump revealed plans to boost the country’s AI capabilities. The President wants to do so through the deregulation of AI. He’s also the force behind the shift to U.S. manufacturing, as the President seeks to make the country a powerhouse among technology producers.
AMD Stock Movement Today
AMD stock was up 2.32% on Thursday, extending its 35.38% year-to-date gain. The stock has also rallied 14.7% over the past 12 months.
Investors will note that AMD is set to report earnings on Aug. 5. This could be another catalyst that sends the stock higher. It will likely surpass expectations, as the company has done so with earnings per share in six of the last eight quarters and with revenue in all eight prior earnings reports.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 26 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $145.90, representing a potential 10.27% downside for the shares.
