Why AMD Stock Jumped Today

Advanced Micro Devices (NASDAQ: AMD) stock recorded another day of strong gains Thursday. Amid a 2% jump for the S&P 500 and a 2.7% rally for the Nasdaq Composite, the semiconductor specialist's share price closed out the day up 4.5%.

AMD stock moved higher today as investors bought back into the broader market on reports that the U.S. is making moves to lower trade war tensions with other economic leaders. The company's share price also appears to have gotten a boost from analyst coverage that was published today.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

AMD stock jumps in bullish day for the broader market

After big sell-offs earlier this month connected to the trade war, the broader market has seen rebound trading this week on hopes that the U.S. is moving closer to deals with large trade partners. Comments from President Donald Trump and other administration officials have helped bolster expectations that a trade deal with China could materialize in the not-too-distant future even though Chinese officials have recently denied that any serious talks have happened.

Meanwhile, some reports suggest that a bilateral trade agreement between the U.S. and India could be forthcoming soon. If so, the development could help strengthen the U.S.'s bargaining position, as India has been viewed as a manufacturing base that could help shift production away from China.

An investment firm just updated its price target on AMD

Before the market opened this morning, Susquehanna published new coverage on AMD stock. While the investment firm lowered its one-year price target on the chip specialist from $150 per share to $135 per share, it maintained a positive rating on the stock. As of this writing, Susquehanna's new price target still implies upside of roughly 43% over the next year.

Analysts have been adjusting their price targets in response to broad-based market pressures recently, but some of the new tech-sector targets still suggest significant upside relative to current valuation levels. AMD is facing a weaker performance outlook due to new restrictions preventing its MI308 processor from being sold to China and broader macroeconomic pressures, but the passage of time could show that the stock was undervalued at current levels if the business delivers meaningful wins in the AI processor space.

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 $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $629,519!*

Now, it’s worth noting Stock Advisor’s total average return is 829% — a market-crushing outperformance compared to 155% 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 April 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.