Why AMD Stock Managed to Post Big Gains in This Week's Volatile Trading
Key Points
AMD held an investor-day conference this week, and it helped the stock rise despite bearish valuation pressures in the AI category.
Investors are betting AMD can win share from Nvidia in GPUs and keep winning share from Intel in CPUs.
- 10 stocks we like better than Advanced Micro Devices ›
Advanced Micro Devices (NASDAQ: AMD) stock managed to close out the past week of trading with substantial gains despite bearish momentum for artificial intelligence (AI). The company's share price gained 5.7% across the stretch. Meanwhile, the S&P 500 inched 0.1% higher after some big swings, and the Nasdaq Composite declined 0.5%.
AMD's valuation defied valuation gravity impacting AI stocks thanks to a strong showing at its investor day conference. Following its presentation, the stock saw a wide range of price-target hikes and ratings upgrades from analysts.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
AMD stock rises despite sell-offs in the AI category
Artificial intelligence stocks got hit with big valuation pullbacks as investors responded to general valuation concerns and reacted to macroeconomic and geopolitical risk factors. Despite some powerful selling momentum impacting the category, AMD's share price marched higher, thanks to information shared at the company's investor conference. The company continues to see room for significant market share expansion in the AI data center graphics processing unit (GPU) space and expects to continue gaining ground against Intel in the central processing unit (CPU) markets for PCs and servers.
What's next for AMD?
On the one hand, AMD has been scoring some meaningful wins in the AI processor category, with its recent deal with OpenAI potentially representing a major turning point in the company's positioning in the market. Improving expectations for the company's outlook in AI have helped power big gains for the company's share price, which is now up 104% across 2025's trading.
On the other hand, AMD stock still comes with some significant risk on the heels of its big gains. Pressure related to tech licensing from Arm Holdings, Nvidia's current dominance in GPUs for AI data centers, and margin pressures stemming from costs connected to gaining ground in the data center market were among the risk factors highlighted by analysts following the company's investor-day presentation.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $599,784!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,165,716!*
Now, it’s worth noting Stock Advisor’s total average return is 1,035% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 10, 2025
Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
Recommended Articles
