Advanced Micro Devices Climbs 18% on Minor Tech Rally
AMD has seen tremendous growth this year and has not been hurt too badly by recent AI market fears over profitability.
Quick overview
- AMD stock has surged over 18% since Thursday, continuing to climb with a 0.3% gain on Monday.
- The company is benefiting from strong investor sentiment and positive data on chip demand, alongside growth targets in AI development.
- Despite recent fears over AI profitability affecting tech stocks, AMD has shown resilience with a 70% stock growth projected for 2025.
- Insider selling has occurred, but it appears to be a personal profit move rather than a sign of underlying issues, as AMD anticipates strong demand for its AI products.
Advanced Micro Devices (AMD) stock gained more than 18% since Thursday when tech stocks began surging, and the company’s stock continued to climb on Monday with a 0.3% gain.
Now part of a wider tech rally, AMD is still surging, holding onto its gains from last week and benefitting from excellent investor sentiment. The company shared new data on chip demand that gave the stock a boost, and they also reported on their growth targets in AI development.
Consumer fears over the AI market and its profitability have tanked tech stocks in recent weeks, but those fears seem to be disappearing as more companies share their excellent revenue reports. AMD has been among those that are changing the narrative for the AI market thanks to 70% stock growth in 2025.
AMD’s Excellent Year Is Only Slightly Marred by AI Fears
Over the last 12 months, AMD stock has gone from $125 per share to its current $213, and they are one of several leading AI-related stocks like Nvidia and Broadcom that have performed well throughout the year. Even though the past two months have seen stock values dip for AI-focused tech stocks, these stocks have not moved in a steep decline but have instead leveled off and shown signs of recovery.
Lots of insider selling activity has taken place within AMD over the past three months, with the company’s CEO selling $40.25 million worth of shares in that period. In smaller companies, such a selloff might trigger a rash of fears and widespread shareholder panic, but for AMD, it appears to be a simple matter of management divesting themselves of stocks for personal profit.
There is no indication that AMD is at a critical point where selling off the stock is the best option. Selling pressure is low now as tech stocks have been swept up in a minor rally. AMD has secured orders for memory chips its MI300 and MI350 AI accelerators for the next few years. They are obviously anticipating excellent demand for a growing market, and investors should have nothing to worry about when it comes to the AI market imploding. There is too much interest and exceptional growth to count the market out just yet.
AMD has soundly secured its place behind AMD in the AI GPU processing market, and they offer a very cost-effective alternative to Nvidia’s powerhouse chips, catering to customers who want affordable options. This positions AMD with a customer base that should continue to grow the AI market even when companies are cutting back and working hard to keep costs low to ensure profitability.
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