Why Did AMD Stock Rise 3.07% Pre-Market?

On April 14, 2025, Advanced Micro Devices (AMD) saw a 3.07% rise in pre-market trading, indicating a positive start to the day for the semiconductor giant.

Citigroup recently maintained a neutral rating for AMD, setting a target price of $100.00. This comes as AMD reported its 2024 annual earnings, with revenue reaching $25.785 billion and net income at $1.641 billion, resulting in a basic earnings per share of $1.01.

AMD's recent performance has been influenced by several factors. On April 11, the company's stock surged by 5.30%, reversing a four-day decline that totaled 24.04%. This volatility was partly due to a rating downgrade by a prominent financial institution, which shifted its stance from "buy" to "hold." Additionally, new U.S. tariff policies have added uncertainty to the semiconductor industry, particularly for products sourced from Taiwan.

Despite these challenges, AMD's financial health remains robust. The company's 2024 financial report showed strong revenue and earnings growth, although global supply chain disruptions and international trade tensions continue to pose external challenges.

AMD is also navigating a complex geopolitical landscape. The U.S. government is pushing for semiconductor manufacturing to return to domestic soil, which could reshape the industry's competitive dynamics. This shift is part of a broader effort to reduce reliance on foreign suppliers, particularly from Taiwan.

Investors are advised to closely monitor AMD's fundamentals and the evolving trade policies, as these factors will significantly influence the company's future performance. The semiconductor industry's ongoing innovation and demand growth present both opportunities and challenges for AMD.