- Advanced Micro Devices seems to be piggy-backing on Nvidia earnings success.
- AMD stock rose 8% in Thursday’s premarket to above $118.
- Nvidia added as much as $222 billion at its peak late Wednesday.
- AMD stock is trading at its highest point since March 2022.
Advanced Micro Devices (AMD) stock has risen 9% in Thursday’s premarket on the back of big brother Nvidia’s (NVDA) record earnings gap up. Nvidia stock shot up 25% late Wednesday after a 55% guidance raise for the next quarter’s revenue projection. Another AI-themed stock, C3.ai (AI) has also rallied more than 13% in the premarket.
NASDAQ futures are up 2.2% on the back of Nvidia’s surge, while Dow futures are flat.
Advanced Micro Devices Stock News: Nvidia achieves largest intrasession market cap gain in history
Simply put, Nvidia’s gain following its post-market earnings release on Wednesday led to the largest intrasession market cap gain on record. Though it settled near $381 by the end of the afterhours session, NVDA stock ran up from $305 to nearly $395 before traders began taking profits off the table. That would mean a $222 billion market cap gain in one session. That was higher than Amazon’s (AMZN) $191 billion surge on February 4 of last year.
As Nvidia’s most-watched competitor in the semiconductor design industry, AMD has followed the much bigger Nvidia by trading up to a level near $118 that it has not achieved since March 2022. This rally has pushed up AMD’s market cap by a much lower but still impressive $15.7 billion.
AMD investors are likely impressed by Nvidia’s second-quarter revenue guidance, which shot up by nearly $4 billion or 55% to $11 billion. Nvidia expects an extreme jump in GPU orders, especially for its H100 chip used in AI-focused data centers. The data center had been languishing in recent quarters for Nvidia but the first quarter showed a measurable turnaround in that part of the business. AMD also has a large data center business that might benefit from sector-wide growth in that realm.
AMD presented on Tuesday at the 51st Annual J.P. Morgan Global Technology, Media, and Communications Conference. AMD CFO, Jean Hu, was already ecstatic regarding the company’s opportunities in the AI space.
“I would say one of the most exciting aspects during the last four months is to see incredible market opportunities, especially the opportunities related to generative AI [or] large language models. Literally, it's just unfolding in front of us,” Hu told the conference. “I think AMD has a broad portfolio. The company has been investing in both the CPU, GPU for the last decade. And then last year, with the acquisition of Xilinx and Pensando, the business added not only CPU, GPU but DPU adaptive compute and adaptive SoC.”
AMD stock forecast
AMD stock will likely now break into the resistance-prone $120. This area pushed AMD stock down during the first three months of 2022. It is unlikely that region will make things easy for bulls this time around. Additionally, the weekly RSI is overbought on the weekly chart, which amounts to further evidence that its current price at $118 will need to move sideways as bulls make sure the stock can be supported here. Support at the moment can be found near the June 2022 range high that should turn into support if needed.
AMD weekly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.