Advanced Micro Devices (AMD) stock soared on Wednesday as investors waited for an earnings report from Nvidia (NVDA). Nvidia is set to report earnings after the market closes today. That boosted semiconductor stocks as traders expect strong results. This includes AMD, which competes with Nvidia in the GPU market while also operating in the CPU sector.
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200% short exposure to NVDA with NVDSOne major focus for investors in Nvidia’s earnings report will be AI demand. Nvidia’s GPUs are widely used in AI data centers, and AMD also sells chips for that market. If Nvidia reports strong growth in AI, it could also lift AMD stock. That’s because rising AI demand would likely increase interest in chips from both Nvidia and AMD.
At the same time, AMD is working on its own AI rack system called Helios. The company says the setup offers data center operators a full AI server rack that arrives prebuilt and ready to install. That could cut setup time for customers. In addition, AMD sees benefits in pairing its CPUs and GPUs together inside the same AI rack.
AMD Stock Movement Today
AMD stock was up 7.26% on Wednesday, adding to a 107.37% year-to-date rally. The stock has also climbed 269.49% over the past 12 months.
Even with today’s gain, trading activity was lighter than usual. Roughly 22 million shares changed hands today, compared to a three-month average daily trading volume of about 42 million shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 28 Buy and eight Hold ratings over the past three months. That comes with an average AMD stock price target of $461.38, implying possible upside of 3.91% for the shares.
