Advanced Micro Devices ( (AMD) ) has risen by 8.37%. Read on to learn why.
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Advanced Micro Devices (AMD) has seen a notable stock price increase of 8.37% over the past week, driven by several key factors. The company’s strong performance in the first quarter of 2025, with a 36% year-over-year revenue increase to $7.4 billion, has bolstered investor confidence. Additionally, AMD’s data center segment experienced a significant 57% growth, contributing to the positive market sentiment.
A major catalyst for AMD’s recent stock surge is its strategic $10 billion deal with a subsidiary of Saudi Arabia’s sovereign wealth fund, which is expected to enhance its presence in the AI market. Furthermore, the company’s board has approved a $6 billion stock repurchasing plan, increasing the total repurchase authority to $10 billion, which has further fueled investor optimism.
Despite facing competition from Nvidia, AMD is making strides in the AI chip market, with potential to outperform Nvidia in certain AI inference applications. This competitive positioning, along with a favorable valuation, has led analysts to maintain a Moderate Buy consensus rating for AMD, with a 12-month average price target suggesting further upside potential.