Advanced Micro Devices (AMD) stock rallied on Wednesday but the gains don’t have much to do with any news from the semiconductor company. Instead, AMD’s stock rally today came alongside broader market movement. This stock market rally is linked to a ceasefire agreement between the U.S. and Iran.
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President Donald Trump announced last night that the U.S. has reached a two-week ceasefire agreement with Iran. During this time, the two countries will iron out details that will hopefully bring an end to the conflict. Additionally, this agreement includes the reopening of the Strait of Hormuz, a major shipping route in the Middle East. The closing of this route increased fuel prices, which caused supply issues that increased prices for products and services around the world.
To go along with this news, AMD stock was praised by analysts at Goldman Sachs. The investment firm’s analysts listed AMD as a top pick heading into Q1 earnings season for chip companies. The bullish coverage was prompted by a recent selloff in the tech sector, which pushed its price-to-earnings-to-growth ratio below the global market average. This hasn’t happened since the dot-com bubble burst in the early 2000s.
AMD Stock Movement Today
AMD stock was up 4.79% on Wednesday, building on an 8.47% year-to-date rally. The stock has also climbed 128.76% over the past 12 months.
AMD stock movement today included some 16 million shares traded, compared to a three-month average daily trading volume of about 36 million shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 21 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $284.68, representing a potential 22.51% upside for the shares.
