Why Advanced Micro Devices Stock Moved Higher Today

Advanced Micro Devices (NASDAQ: AMD) stock ended Friday's trading in the green, despite pullbacks following a pop early in the session. The company's share price closed out the day up 1.1%, but it had been up as much as 4.7% earlier in the session. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) fell 0.2% in the daily session, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 0.5%.

Thanks to rising excitement surrounding the company's position in artificial intelligence (AI), AMD stock opened today's trading with a big gain. The company's share price still advanced in the daily session, but it lost some ground as investors weighed new export restrictions for semiconductor technologies and the risk of escalating conflict in the Middle East.

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Investors are becoming increasingly bullish on AMD's AI outlook

AMD stock has seen wild fluctuations over the last couple of years in conjunction with shifting expectations for the company's standing and market opportunity in the AI space. Following the Advancing AI 2025 conference hosted by the hardware specialist last week, market sentiment surrounding the stock has become significantly more bullish.

At the conference AMD profiled its recently launched Instinct MI350 graphics processing unit (GPU) and its new server product for data centers. The company also announced that it had entered into a new deal to supply OpenAI with processing hardware, and its indications suggest that it may have also reached a new deal with Amazon.

What's next for AMD stock?

AMD appears to be making some laudable progress in the AI hardware market. While the company may continue to play second fiddle to Nvidia in the high-end data center GPU market, it will likely still have opportunities to score some big wins in the space.

On the other hand, AMD stock could see high levels of volatility in the near term. Tech stocks wavered today following news that the Trump administration was implementing new bans on tech exports to China, and the market is also on edge about the possibility that the U.S. could get involved in the conflict between Israel and Iran. So even though AMD's AI growth bets appear to be moving in the right direction, there are other big catalysts that could shape stock performance in the near term.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool has a disclosure policy.