What's Going On With AMD Stock Monday?

Advanced Micro Devices, Inc AMD stock is trading higher Monday in line with the broader index Invesco QQQ Trust, Series 1 QQQ despite reports of the U.S. planning to prevent American chipmakers from selling semiconductors to China that bypass its embargo.

The U.S. plans to block some AI chips that fall just under current technical parameters while demanding companies report shipments of others. 

Meanwhile, after serving for three years, AMD's CEO, Lisa SU, has reportedly stepped down from the "board of directors" position at Cisco Systems, Inc CSCO to prevent conflict of interests as AMD proposes a shift in its image in the networking and server industry.

AMD is preparing to become a competitive player in the server industry, mainly through its EPYC offerings and developments within software resources. 

Moreover, due to the influx of genAI developments, AMD has rapidly improved its data center offerings, posing a threat to Cisco.

On a separate note, Citi analyst Christopher Danely's last week meeting with investors on the East Coast flagged a lack of conviction on the buy side, given how far semiconductor stocks have risen coupled with soft fundamentals. 

AMD grabbed headlines given that the Xilinx business is falling off, and concerns over the MI300 ramp are getting pushed out.

While Goldman Sachs analyst Toshiya Hari expects AMD's share gains in the server market to re-accelerate in 4Q23 and 2024 as the large cloud hyperscale companies resume their non-AI server build-outs, he recognized that the gap between AMD and Intel Corp INTC from a performance or total cost of ownership perspective could narrow if Intel executes to its current proposed product roadmap.

Price Action: AMD shares traded higher by 1.20% at $106.35 on the last check Monday.