From Nasdaq: 2025-05-14 12:05:00

Shares of Advanced Micro Devices (NASDAQ: AMD) surged 8.9% on Wednesday, reaching a 4.9% gain by midday. Positive factors driving the rally include regulatory changes, improved Wall Street sentiment, and a new $6 billion share buyback plan. Analysts also raised AMD’s price target to $130.

The U.S. Department of Commerce lifted the “AI Diffusion Rule,” benefiting chipmakers like AMD. BofA analysts raised AMD’s price target to $130, predicting a 17% increase. AMD and Nvidia’s partnership with Humain for a 500MW data center in Saudi Arabia also contributed to the positive news.

AMD’s new $6 billion share repurchase program signals confidence in its growth prospects. Despite a high valuation of 29 times next year’s sales, analysts view AMD as an attractive investment amid the AI revolution. The Motley Fool’s Stock Advisor team did not include AMD in their top 10 stock picks.

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Read more at Nasdaq: Why AMD Stock Popped Wednesday Morning