AMD's 12th-Ranked $4.33B Trading Volume and 0.02% Decline Amid Speculation on Alibaba AI Order Catalyst

Market Snapshot

Advanced Micro Devices (AMD) closed on December 23, 2025, with a trading volume of $4.33 billion, ranking 12th in the market for daily trading activity. Despite this, the stock edged down slightly by 0.02%, indicating a mixed investor sentiment. The decline, though minimal, contrasts with the broader semiconductor sector’s recent momentum, driven by Micron Technology’s strong earnings and optimism around AI demand. AMD’s price action remains constrained near key technical levels, with the current price 6.2% below a critical resistance threshold and 35.9% above a pivotal support level, suggesting a period of consolidation ahead of a potential breakout or reversal.

Key Drivers

Alibaba’s AI Hardware Order as a Strategic Catalyst

The most significant near-term catalyst for AMD emerged from unconfirmed reports that Alibaba Group is considering a massive order of 40,000 to 50,000 units of AMD’s MI308 AI accelerators. This potential deal, if finalized, would represent one of the largest single orders for AMD in China since U.S. export restrictions began limiting access to the country’s AI market in 2023. The MI308, engineered to comply with U.S. export rules, is positioned as a viable alternative to Nvidia’s H-series chips in data centers. The order could generate hundreds of millions in revenue, depending on pricing, and validate AMD’s ability to compete in a high-stakes market dominated by Western rivals.

Geopolitical and Market Sentiment Reversal

The Alibaba rumor directly counters recent bearish sentiment surrounding China’s progress toward semiconductor self-sufficiency. Last week, concerns over a Chinese breakthrough in EUV lithography had pressured AMD shares, as investors feared a reduced reliance on Western chipmakers. The potential deal, however, underscores that top-tier Chinese hyperscalers still depend on advanced Western technology for immediate AI ambitions. This development challenges narratives of China’s decoupling from global supply chains and signals continued demand for high-performance silicon in the region.

Technical and Sector-Level Implications

Despite the fundamental optimism, AMD’s stock has shown limited price movement, rising only 0.27% to $214.00 at the time of reporting. This muted response suggests investor skepticism about the rumor’s validity or uncertainty over its scale. The stock’s technical position remains precarious, with key resistance levels acting as a near-term barrier to upward momentum. However, the price remains significantly above historical lows, providing a buffer against immediate sell-offs. Sector-wide support from Micron’s earnings and broader AI demand has helped AMD avoid a deeper correction, but a sustained breakout will require confirmation of the Alibaba order or additional positive catalysts.

Risks and Uncertainties

The Alibaba-MI308 deal remains unconfirmed, with MLex as the sole source for the reported order size. Neither AMD nor Alibaba has publicly commented, leaving the news in a speculative gray area. Additionally, U.S. export compliance requirements, including a 15% fee on approved sales to China, could impact profitability. Even if the order materializes, AMD’s recent financial guidance excludes meaningful China revenue, meaning a confirmed deal could force upward revisions to forecasts and attract analyst upgrades. However, until official announcements materialize, investors are advised to approach the stock cautiously, as the market may overreact to either confirmation or denial of the rumor.

Sector-Wide AI Momentum

The broader semiconductor sector has been bolstered by renewed confidence in AI-driven demand. Micron’s recent earnings report, which highlighted strong memory chip sales to data centers, provided a tailwind for the sector. AMD’s MI308 aligns with this trend, positioning the company to capture a share of the growing AI infrastructure market. However, competition from Nvidia and domestic Chinese players like Huawei and Cambricon remains intense. The MI308’s success will depend on its ability to secure large-scale contracts and maintain performance parity with rivals, while U.S. policy shifts could further influence market access.

In summary, AMD’s stock is at a crossroads, with the potential Alibaba order serving as a critical test of its market position and technical resilience. While the company’s fundamentals remain strong, as highlighted by a Benzinga Growth score of 91.14, the path forward hinges on the resolution of geopolitical uncertainties and the validation of its AI offerings in key markets.