67% Chip Price Hike, Trade Buzz Spark Pre-Q2 AMD Stock Rally—Can Q2 Deliver?
AMD shares surged again as investor sentiment builds around trade optimism and strong AI hardware momentum ahead of earnings.
Quick overview
- AMD shares surged over 5% in pre-market trading, driven by trade optimism and strong AI hardware momentum ahead of earnings.
- The company raised the price of its Instinct MI350 AI accelerator by 67%, signaling strong demand and potential revenue growth.
- Wall Street anticipates significant earnings growth for AMD, with expectations of a 36% year-over-year revenue increase in Q2.
- AMD's recent stock performance positions it as one of the top tech stocks, but upcoming earnings results will be crucial for sustaining the rally.
Live AMD Chart
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AMD shares surged again as investor sentiment builds around trade optimism and strong AI hardware momentum ahead of earnings.
Momentum Returns: Pre-Market Pop Fueled by Trade Optimism
Advanced Micro Devices (NASDAQ: AMD) is back in the spotlight this week as its stock sees renewed buying pressure, rallying over 5% in pre-market trading. The move follows several strong sessions, as traders respond positively to broader market optimism—fueled by the U.S.-EU chip tariff exemption and ongoing U.S.-China trade dialogue. AMD has now gained roughly 17% since its recent dip below the $150 level last Tuesday.
AMD Chart Daily – The 20 SMA Acts As Support
AMD opened Monday at $169.08, following a strong close at $166.47 on Friday, suggesting that investors are positioning ahead of the company’s upcoming earnings report and pricing in bullish AI-related developments.
Bold AI Pricing Move: Instinct MI350 Surges in Value
A major catalyst in AMD’s renewed uptrend is its decision to raise the price of its Instinct MI350 AI accelerator from $15,000 to $25,000—a 67% hike. Analysts were quick to take notice, especially since AMD’s MI350 still reportedly outperforms Nvidia’s flagship Blackwell B200, which is also priced at $25,000.
This premium signals that AMD sees strong demand and a high-margin opportunity in the AI hardware space. If customer adoption follows, the pricing change could substantially boost AMD’s revenue in the second half of the year.
Earnings Preview: Big Expectations, Trade Tailwinds
Advanced Micro Devices is expected to report its Q3 fiscal 2025 earnings next week, with Wall Street projecting data center GPU revenue of approximately $1.65 billion. That number already factors in an $800 million drag from U.S. export restrictions to China—restrictions that could ease if trade talks progress, providing a potential upside surprise.
For Q2, AMD is expected to post 36% year-over-year revenue growth and a 55% rise in earnings per share. A significant 57% increase in data center segment sales is expected to be the primary driver, lifting gross margins to 54%.
Technicals and Trend: One of July’s Best-Performing Tech Stocks
AMD has delivered a remarkable 28% rebound in June and an additional 26% in July, making it one of the best-performing names among large-cap tech. Recent gains have helped the stock break above key weekly moving averages, reinforcing bullish momentum heading into earnings week.
While expectations are running high, actual results next week will be critical in sustaining the rally. Any earnings beat or positive forward guidance could propel AMD toward retesting 2021 highs.
Conclusion: AMD’s stock resurgence reflects renewed confidence in its AI hardware roadmap, pricing power, and macro tailwinds from trade diplomacy. However, next week’s earnings will be the true test of whether AMD’s rally can evolve into a longer-term breakout—or if near-term exuberance fades under closer scrutiny.
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