Bullish Revival for AMD Stock: Saudi Deal, Buyback, Q1 Earnings Spark Momentum
AMD’s stock continues to regain momentum after a year-long slump, bolstered by earnings strength, macro optimism, and a major tech deal.
Quick overview
- AMD's stock has gained momentum, marking its fourth consecutive week of increases and rising 52% since April.
- The company has reversed a year-long downtrend, driven by strong earnings, easing macroeconomic concerns, and a significant tech partnership with Saudi AI firm Humain.
- AMD's recent Q1 earnings report exceeded expectations, reinforcing investor confidence and projecting a 14% revenue growth rate over the next three years.
- The announcement of a $6 billion share buyback program further demonstrates management's confidence in AMD's long-term prospects in the AI sector.
Live AMD Chart
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AMD’s stock continues to regain momentum after a year-long slump, bolstered by earnings strength, macro optimism, and a major tech deal.
AMD Reverses Course with Fourth Straight Weekly Gain
Advanced Micro Devices (NASDAQ: AMD) capped off its fourth consecutive week of gains, rising $14.20 over the past five sessions. The stock has now surged by 52% since its April low of $76.50, reflecting a clear shift in sentiment after a prolonged downtrend.
AMD had been under pressure for over a year, dropping from its March 2023 high of $227 due to a fading AI narrative, macroeconomic headwinds, and slowing revenue growth. By April 2024, shares had lost nearly 70% of their value. But recent market developments and fresh business wins have helped trigger a robust turnaround.
AMD Stock Chart Weekly – Buy Signal After Breaking Above the 100 SMA
This week’s rally brought AMD back above the $115 level, a key technical zone, as confidence grew both fundamentally and on the charts. A bullish open on Monday — driven by easing US-China tensions and renewed risk appetite — added immediate momentum.
AMD Chart Monthly – Bouncing Off MAs After Hammer Candlestick
That surge was amplified on Tuesday after dovish commentary from former President Donald Trump, urging the Fed to cut rates, coincided with a softer-than-expected U.S. inflation report. Together, these catalysts reignited investor enthusiasm for growth and tech stocks.
Saudi AI Partnership and Earnings Lift AMD’s Outlook
Beyond macro tailwinds, AMD scored a major strategic win this week by announcing a potential $10 billion collaboration with Saudi AI company Humain. Under the agreement, AMD would supply GPUs and CPUs for Humain’s planned deployment of 500 megawatts of AI computing capacity. The partnership marks a significant endorsement of AMD’s technology and further cements its role in powering global AI infrastructure.
In addition to strategic expansion, AMD ramped up its share repurchase efforts, authorizing a fresh $6 billion buyback program — on top of the existing $4 billion plan. The move signals confidence from management in both the company’s valuation and long-term position in the AI race.
Earnings Surprise Fuels Further Optimism
Last week’s Q1 earnings report offered further encouragement. AMD topped Wall Street expectations, beating revenue estimates by 4.5% and surpassing EPS forecasts by 11%. The strong financial performance helped reinforce the narrative that the company is regaining growth traction. Analysts now project AMD’s revenue to grow at a 14% compound annual rate over the next three years — closely in line with the semiconductor industry’s expected 16% growth pace.
With improving fundamentals, bullish macro signals, and a growing foothold in AI, AMD’s stock recovery appears to have solid legs — and the recent rally may be the beginning of a longer-term uptrend.
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