What's Going On With AMD Shares

Advanced Micro Devices, Inc. AMD shares are trading higher by 3.35% to $115.05 Wednesday morning. The stock is trading higher amid overall market strength following a lighter-than-expected June inflation report.

See Also: What's Going On With Nvidia Stock Today?

What Happened?

U.S. CPI inflation in June decelerated more than anticipated, reinforcing investor expectations of a single rate hike by the Federal Reserve followed by a halt to its tightening cycle. The Bureau of Labor Statistics' data reveals a drop in the annual inflation rate from 4% in May to 3% in June, slightly below the average economist forecast of 3.1%.

This marks the twelfth consecutive month of declining inflation and the lowest reading since March 2021...Read More

What Else?

Lower inflation generally translates to reduced input costs for businesses. This means that AMD, as a company, may experience less pressure on expenses related to raw materials, production and other operational inputs. It can help maintain or improve profit margins.

When inflation is lower than anticipated, it can also positively impact consumer purchasing power. This means that consumers may have more disposable income to spend on goods and services, including AMD's products.

Increased consumer spending can lead to higher demand and sales for the company.

According to data from Benzinga Pro, AMD has a 52-week high of $132.83 and a 52-week low of $54.57.