Advanced Micro Devices Inc. (AMD) shares jumped more than 4% in Monday premarket trading as investors piled back into high-growth tech stocks amid a broader risk-on rally. The move comes as U.S. stock futures advanced after President Donald Trump announced a peace agreement with Iran, a development that pushed crude oil prices lower and boosted sentiment toward growth stocks.
Nasdaq futures gained 2.04%, while S&P 500 futures rose 1.23%. Dow futures climbed 0.86%, and Russell 2000 futures added 1.44%, reinforcing the positive tone. The broader market backdrop is supporting semiconductor stocks, with traders rotating back into high-beta technology names.
AMD is also moving closer to recent highs, a setup that often attracts momentum and breakout-focused traders. Recent analyst upgrades have added to the bullish narrative.
Analyst Upgrades Strengthen AI Growth Thesis
Citigroup analyst Atif Malik recently upgraded AMD to Buy from Neutral and raised his price forecast to $575 from $460, saying investors have not fully priced in AMD's emergence as a "legit second source in the GPU market." Malik said AMD is positioned to capture a significant share of Meta Platforms Inc.'s (Meta (META)) GPU spending through its custom MI450 chips and a six-gigawatt Meta deal.
Bank of America Securities also recently reiterated its Buy rating and raised its price forecast to $560.
Technical Setup Remains Bullish
AMD's longer-term trend remains firmly positive. At $533, the stock trades 10.5% above its 20-day simple moving average of $481.97 and 109.7% above its 200-day simple moving average of $253.93. The stock also maintains a bullish moving-average structure, with the 20-day average above the 50-day average and the 50-day average above the 200-day average.
Momentum indicators, however, show some signs of cooling. The MACD remains below its signal line, while the histogram is negative. That suggests the pace of gains has slowed, even as the broader uptrend remains intact. Traders are watching resistance near $546.50, a level close to the stock's 52-week high zone, where rallies could face selling pressure.
AMD Earnings and Analyst Outlook
The next major catalyst is AMD's estimated Aug. 4 earnings report. Wall Street expects earnings of $1.55 per share, up from 48 cents a year earlier. Revenue is projected to reach $11.28 billion, compared with $7.68 billion in the prior-year period.
AMD trades at approximately 170.5 times earnings, reflecting a premium valuation tied to expectations for continued AI-driven growth. The stock carries a Buy consensus rating based on 50 analyst ratings, with an average price forecast of $490.07. Recent analyst actions include Citigroup's upgrade to Buy and $575 price forecast on June 12, BofA Securities' Buy rating and $560 price forecast on June 11, and Barclays' Overweight rating with a $665 price forecast on June 1.
ETF Exposure
AMD holds significant weightings in several semiconductor and technology-focused exchange-traded funds, including:
- iShares Semiconductor ETF (SOXX): 8.03%
- ARK Next Generation Internet ETF (ARKW): 7.37%
- GraniteShares 2x Long AMD Daily ETF (AMDL): 66.65%
Large inflows or outflows in these funds can create additional buying or selling pressure in AMD shares.
AMD Price Action
Advanced Micro Devices shares were up 4.19% at $533.00 during premarket trading on Monday, according to market data.
