Why AMD Stock Rose Today
Key Points
Advanced Micro Devices doesn’t have to beat Nvidia for its shareholders to win.
AMD's stock could surge to $290 per share.
- 10 stocks we like better than Advanced Micro Devices ›
Shares of Advanced Micro Devices (NASDAQ: AMD) climbed on Monday, following bullish analyst remarks.
By the close of trading, AMD's stock price was up about 4%.
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.
Second place could still be highly profitable
AMD doesn't have to be Nvidia. That's the view of Wedbush analyst Matt Bryson.
Bryson argues that there's no need for AMD to match its far larger rival's massive market share in advanced artificial intelligence (AI) chips. AMD's shareholders will do just fine if the chipmaking challenger can deliver robust sales of central processing units (CPUs) used in personal computers (PCs) and data center servers when it reports its fourth-quarter financial results on Feb. 3.
Bryson believes tight supplies of server CPUs will boost AMD's profit margins by enabling it to command higher prices. He noted that the chip designer's server CPUs are already some of its most lucrative products.
Bryson also pointed to sales to Chinese customers as another potential growth driver. The Trump administration authorized certain chip sales to China in January.
All told, Bryson sees AMD's stock price rising roughly 18% to $290 per share.
AMD's upcoming earnings release
Investors can expect to hear more about AMD's CPU sales and AI-focused growth initiatives during the company's conference call, which is scheduled to begin at 5:00 p.m. EST on Tuesday.
Should you buy stock 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 $450,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,171,666!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 2, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
