Advanced Micro Devices Inc. (AMD) stock is trading higher by almost 1% in Friday premarket trading. The move follows bullish comments from AMD Chief Technology Officer Mark Papermaster on artificial intelligence demand.

Nasdaq futures rose 0.44%, while S&P 500 futures slipped 0.05%.

AMD CTO Says AI Demand Isn't Slowing

AMD sees no slowdown in AI demand as businesses seek bigger productivity gains from the technology, CNBC-TV18 reported Thursday, citing Papermaster.

Papermaster said businesses remain in the early stages of AI adoption. Companies may become more selective about workloads to control costs. However, AMD does not expect that shift to slow overall demand.

"AI is speeding up everything in the industry," Papermaster said. He added that AMD is also using AI to accelerate its own product development.

Agentic AI could provide another growth opportunity. Unlike applications focused on individual tasks, agentic systems can connect multiple tasks and reason across broader workflows. Papermaster said that could deliver significant productivity gains.

AI Workloads Shift Toward Inference

Meanwhile, AMD expects the computing mix to change as AI moves from training toward inference and real-world applications.

Papermaster said businesses will need a combination of CPUs, GPUs and networking. For some AI workloads, the CPU-to-GPU ratio could move closer to one-to-one. Earlier systems typically used one CPU for every eight GPUs.

AMD also expects more established AI workloads to move toward on-premise data centers and AI-enabled PCs as companies seek to lower costs.

AMD Expands Beyond Chips

AMD is also expanding from individual processors into complete computing systems.

The company plans to introduce AI rack-level integration later this year. Its broader offering will combine computing hardware with software and networking capabilities.

"We have transformed from being a computer chip provider to a solution provider," Papermaster said.

The strategy could give AMD greater exposure to AI infrastructure spending as customers increasingly seek integrated computing platforms rather than individual chips.

Technical Analysis

AMD remains well above its major moving averages. At $550.25, the stock is 13.4% above its 20-day simple moving average of $486.23. It is also 11.3% above its 50-day SMA of $495.58 and 56.3% above its 200-day SMA of $352.92.

However, the short-term setup remains mixed. The 20-day SMA is below the 50-day SMA. Meanwhile, the 50-day SMA remains above the 200-day SMA, supporting the longer-term uptrend.

Momentum has improved. The MACD is above its signal line, while the histogram is positive. That points to strengthening buying pressure.

Resistance sits near $561.50. A break above that level could bring AMD's 52-week high of $584.73 back into focus. Support sits near $463.

Analyst Outlook

The stock carries a Buy consensus rating and an average price forecast of $604.

Piper Sandler initiated coverage with an Overweight rating and a $600 price forecast on Sept. 10. Raymond James upgraded AMD to Strong Buy and raised its forecast to $641 on Aug. 25. BMO Capital initiated coverage with an Outperform rating and a $550 forecast on Aug. 21.

Momentum, Quality and Growth Scores

AMD scores strongly on momentum, quality and growth in the market data scorecard.

Its momentum score stands at 99 out of 100, while quality is 94.64 and growth is 95.6. However, its value score is just 3.72, reflecting the stock's premium valuation.

ETF Exposure

AMD has an 8.22% weighting in the iShares Semiconductor ETF (SOXX). It also accounts for 6.55% of the First Trust Nasdaq Semiconductor ETF (FTXL) and 6.52% of the Pacer Data and Digital Revolution ETF (TRFK).

These weightings give AMD meaningful exposure to broader semiconductor and technology ETF flows.

Price Action

AMD Stock Price Activity: Advanced Micro Devices shares rose 0.95% to $550.25 in Friday premarket trading, according to market data.