AMD Stock Jumps 4%, Eyes $150-160 Target After HSBC Upgrade
AMD's stock is making headlines today with a strong pre-market advance that has traders expecting a sector-wide bounce, despite broader...
Quick overview
- AMD's stock surged 5% in pre-market trading, reflecting renewed investor optimism following a bullish upgrade from HSBC.
- The company is expected to release its fiscal Q2 2025 earnings on August 5, with analysts forecasting a decline in EPS compared to last year.
- Despite recent volatility, AMD has shown strong support at its 100-week SMA, leading traders to anticipate further upward momentum.
- Long-term projections suggest significant growth in AMD's EPS, with expectations of a 53.6% increase by fiscal 2026.
Live AMD Chart
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AMD’s stock is making headlines today with a strong pre-market advance that has traders expecting a sector-wide bounce, despite broader market concerns over US employment trends continuing.
AMD’s Strong Pre-Market Rally
Advanced Micro Devices (NASDAQ: AMD) grabbed attention in pre-market trading with an early 5% surge, after a choppy Tuesday session ended in only modest gains. Closing yesterday at $138.41, AMD opened today at $145.66, signaling renewed investor optimism.
The rally followed a bullish upgrade from HSBC’s Frank Lee, who doubled his price target for AMD from $100 to $200 per share. Lee pointed to AMD’s upcoming chip releases, which he argues will narrow the performance gap with market leader Nvidia in the highly lucrative AI accelerator space.
June Breakout and Early July Volatility
AMD delivered one of the best performances among large-cap tech stocks in June, rebounding 28% from its Q1 lows and breaking decisively above key weekly moving averages. Last Monday, the stock reached a short-term high of $147.75, spurring bullish calls for further upside.
But the first week of July saw the rally stall, with investors weighing stretched valuations, technical resistance levels, and fierce competition. The stock dipped as low as $135.12 on Tuesday before stabilizing near $137.90 to end the holiday-shortened week sitting on its 100-week simple moving average.
Reversal Signals Support for Bulls
Despite Monday’s dip to $133.50, AMD found solid support at its 100-week SMA and quickly reversed course. Three consecutive days of gains have traders anticipating further momentum in the weeks ahead, with targets set first at $150 and potentially higher if the technical breakout sustains.
AMD, based in Santa Clara, California, is scheduled to release its fiscal Q2 2025 earnings results after the market closes on Tuesday, August 5.
Q2 2025 Earnings Expectations
- Analysts forecast earnings per share (EPS) of $0.35 for the quarter, representing a decline of 30% from $0.50 in the same period last year.
- Despite this expected drop, AMD has a track record of meeting or beating Wall Street’s earnings estimates over the past four quarters.
Long-Term EPS Outlook
- For fiscal 2025, analysts project AMD’s EPS will reach $3.17, up nearly 21% from $2.62 in fiscal 2024.
- Looking further ahead, EPS is anticipated to surge 53.6% year-over-year to $4.87 in fiscal 2026.
Conclusion: While AMD’s bullish momentum is fueling hopes for continued tech sector strength, broader market sentiment remains cautious as investors monitor US unemployment trends for signs of cooling in the labor market that could weigh on economic growth and future demand for semiconductors.
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