Shares of Advanced Micro Devices (AMD) jumped nearly 4% in Thursday's premarket session, riding the coattails of Micron Technology's (MU) stronger-than-expected earnings and a bullish outlook that has investors feeling good about artificial intelligence infrastructure spending all over again.
The broader market was also in a cheery mood, with S&P 500 futures rising about 0.8% ahead of the opening bell.
Micron reported fiscal third-quarter adjusted earnings of $25.11 per share on revenue of $41.46 billion, comfortably beating Wall Street's expectations. The memory-chip maker also forecast fiscal fourth-quarter adjusted earnings of about $31 per share on revenue of roughly $50 billion. That upbeat outlook matters for AMD because memory is a critical component of AI servers, and if Micron is seeing that kind of demand, it bodes well for the entire AI infrastructure ecosystem.
AMD Remains In A Strong Uptrend
AMD continues to trade in a strong long-term uptrend. The stock sits 5.5% above its 20-day simple moving average of $510.37, 25.7% above its 50-day average of $428.30, and a whopping 101.9% above its 200-day average of $266.73. That's a stock that has been on a tear.
However, momentum has eased a bit. The moving average convergence divergence (MACD) indicator remains below its signal line with a negative histogram, suggesting that buying momentum has slowed even as the broader trend remains positive. Traders are watching resistance near $546.50, while support is around $437.00.
Earnings And Analyst Outlook
AMD is expected to report quarterly results on Aug. 4, 2026. Wall Street expects earnings of $1.55 per share, up from 48 cents a year earlier, on revenue of $11.28 billion, compared with $7.68 billion in the prior-year period.
The stock trades at about 173.2 times earnings, reflecting its premium valuation. Analysts maintain a consensus Buy rating with an average price forecast of $496.50. Recent analyst actions include:
- UBS reiterated Buy and raised its price forecast to $670 on June 24.
- Citigroup upgraded the stock to Buy and raised its price forecast to $575 on June 12.
- Bank of America Securities maintained Buy and increased its price forecast to $560 on June 11.
MarketDash Edge View
According to MarketDash Edge, AMD scores highly for momentum, quality, and growth but ranks poorly on value. The stock has a Momentum score of 98.48, a Quality score of 95.2, and a Growth score of 96.89. Its Value score stands at just 3.21, reflecting the stock's premium valuation.
ETF Exposure
AMD is a major holding in several semiconductor and AI-focused exchange-traded funds, including the iShares Semiconductor ETF (SOXX), where it has an 8.03% weighting, the ARK Next Generation Internet ETF (ARKW) at 7.37%, and the Dan Ives Wedbush AI Revolution ETF (IVES) at 7.19%. Strong fund inflows or outflows in these ETFs can influence demand for AMD shares.
AMD Stock Price Activity: Advanced Micro Devices shares were up 3.63% at $538.60 during premarket trading on Thursday, according to market data.
