AMD Shares Soar 3.91% on AI Chip Demand, Analyst Upgrades

Advanced Micro Devices (AMD) shares surged 3.91% intraday, reaching their highest level since December 2024, marking a significant milestone for the semiconductor giant.

The strategy of buying AMD shares after they reached a recent high and holding for one week yielded strong results over the past five years. The strategy achieved an overall return of 69.60%, surpassing the benchmark return of 57.98% by 11.63 percentage points. While the strategy had a maximum drawdown of -47.07%, it maintained a relatively high Sharpe ratio of 0.53, indicating good risk-adjusted returns. The volatility of the strategy was 45.21%, reflecting the significant price swings experienced during this period.

AMD's stock has been on an upward trajectory, driven by increased analyst coverage and upgrades. Melius Research analysts have upgraded AMD's stock to "buy," highlighting the growing demand for AI chips and the company's new offerings that are attracting hyperscaler and sovereign customers. This positive momentum in the broader market has also contributed to AMD's stock performance.

Investors have welcomed AMD's plans for new AI processors, which have further boosted the stock's upward movement. The company's focus on AI technology has garnered significant attention and investment, positioning AMD as a key player in the rapidly evolving AI landscape.

TD Cowen has also lifted their price objective for AMD from $110.00 to $115.00, maintaining a "buy" rating. This upgrade reflects the market's confidence in AMD's future prospects and its ability to capitalize on the growing demand for AI solutions.