Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading higher Wednesday morning, attempting a recovery from early-week volatility. Here’s what investors need to know.
- AMD is in a favorable position. Check the fundamentals here.
What To Know: The rebound is fueled by a series of major AI infrastructure announcements and ambitious long-term financial targets that are helping investors look past recent concerns regarding big-tech competition.
The chipmaker is gaining momentum following news of an expanded collaboration with Hewlett Packard Enterprise. The partnership focuses on Helios, an open, rack-scale AI architecture integrating AMD EPYC CPUs and Instinct GPUs, slated for global release in 2026. Additionally, cloud partner Vultr announced a massive expansion in Ohio, planning to deploy 24,000 MI355X GPUs to power a new AI supercluster.
These developments have helped calm investor nerves after reports that Meta Platforms might shift workloads to Google's custom TPUs initially triggered a sharp sell-off. Countering these fears, AMD showcased the ZAYA1 foundation model, trained on MI300X GPUs, which reportedly outperforms Meta's Llama-3-8B with 10x faster save times.
Lifted by reiterated confidence from analysts at Wedbush and Bank of America, who see a path to $100 billion in data center revenue, and a projected 35% compound annual growth rate through 2030, AMD appears to be stabilizing as it solidifies its roadmap against rival Nvidia.
Benzinga Edge Rankings: Reinforcing this positive outlook, Benzinga Edge rankings assign AMD a Growth score of 91.15 and a Momentum score of 91.13, signaling strong underlying fundamentals despite the stock’s negative short-term price trend.
AMD Price Action: Advanced Micro Devices shares were up 0.79% at $216.94 at the time of publication on Wednesday, according to Benzinga Pro data.
The 52-week range for AMD has been quite extensive, with a low of $76.48 and a high of $267.07. This wide range highlights the stock’s volatility and the potential for significant price movements. The current price is closer to the upper end of this range, which could act as a psychological resistance level for traders.
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How To Buy AMD Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Advanced Micro Devices’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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