AMD stock rallied 20% due to new $10 billion deal, strong Q1 earnings, improved US-China relations.

From Nasdaq: 2025-05-16 00:37:00

Advanced Micro Devices stock (NASDAQ:AMD) surged by over 4% in Tuesday’s trading and remains up by close to 20% over the past month. The surge is driven by a new $10 billion deal with Humain, a Saudi-based startup backed by Saudi Arabia’s sovereign fund to build data centers and AI infrastructure with AMD products.

AMD’s strong Q1 earnings also contributed to the stock’s rise, with revenue rising by 36% to $7.44 billion and earnings at $0.96 per share. The growth was driven by strong data center sales, up 57% to $3.7 billion, with AMD’s CPUs taking market share from Intel in the data center space.

China export restrictions targeting AMD’s AI chips may ease as U.S.-China trade tensions are showing signs of improvement, with tariffs suspended and progress made in talks. This could potentially lead to the relaxation of chip export restrictions, benefiting AMD.

Despite volatility, AMD stock has shown strong performance over the years, with Trefis valuing the stock at about $107 per share. The High Quality Portfolio has outperformed the S&P 500, showing less risk and better returns. The current uncertain macroeconomic environment could impact AMD’s performance in the future.



Read more at Nasdaq: Why AMD Stock Rallied 20% Over The Past Month?