Stock Market Today, April 16: Advanced Micro Devices Surges on AI Demand Momentum
Advanced Micro Devices (NASDAQ:AMD), a designer of microprocessors and GPUs, closed Thursday at $278.26, up 7.80%. The stock moved higher as investors reacted to AI-driven demand momentum and broader semiconductor optimism. They’re also watching how AMD converts its AI accelerator opportunity into sustainable growth. Trading volume reached 62.8 million shares, about 65% above its three-month average of 38 million shares. Advanced Micro Devices IPO'd in 1972 and has grown 8,734% since going public.
How the markets moved today
The S&P 500 added 0.23% to finish Thursday at 7,039, while the Nasdaq Composite climbed 0.36% to close at 24,103. Within semiconductors, industry peers Nvidia closed at $198.24 (-0.32%) and Intel finished at $68.50 (+5.48%), underscoring mixed reactions across AI chipmakers.
What this means for investors
While Taiwan Semiconductor Manufacturing dipped 3% today after delivering impressive Q1 earnings, it still offered plenty of promise for related stocks like AMD. TSM grew sales by 41% in Q1, expects revenue to increase by roughly 32% in Q2, and continues to spend heavily on capex to meet robust AI-related demand. This is excellent news for AMD shareholders, as the company is a TSM customer.
In a sense, TSM’s earnings let AMD shareholders peek behind the curtains to get a guesstimate on how the CPU and GPU juggernaut may fare when it reports its own earnings on May 5th. Despite AMD’s stock tripling over the last year, it trades at a reasonable 39 times forward earnings, considering its 32% sales growth last quarter.
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Josh Kohn-Lindquist has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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