What's Going On With AMD Stock This Week?

Shares of Advanced Micro Devices, Inc. AMD are up 5% this week, trading at $148.83 Friday morning. The stock has gained following Donald Trump's victory in the 2024 U.S. presidential election.

Trump's return to the White House and a Republican-controlled Senate signal a shift in U.S. economic policy, potentially raising investor optimism around benefits for the semiconductor industry.

What To Know: One driver behind AMD's stock uptick is anticipation of Trump's tax policies, which include expanded corporate tax cuts. Analysts predict that lower corporate tax rates could boost AMD's profitability, freeing up capital for reinvestment in its advanced semiconductor production and R&D efforts.

Investors see these policies as advantageous for tech manufacturers like AMD, which face rising costs in developing next-generation chips for data centers, artificial intelligence, and consumer electronics.

Additionally, Trump’s aggressive trade stance, particularly his focus on tariffs to encourage U.S. manufacturing, could bolster domestic production incentives, a benefit for AMD, which relies on both U.S. and global supply chains.

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What Else: However, while a protectionist stance may reduce competition from foreign manufacturers, there's concern that high tariffs, especially a proposed 60% levy on Chinese imports, could disrupt AMD's supply chain and lead to higher component costs.

If implemented, these tariffs could impact AMD's pricing flexibility and competitiveness, especially if China retaliates by limiting access to critical raw materials or manufacturing capacity. Still, the prospect of increased U.S. subsidies and lower tax rates under Trump's administration offers short-term optimism for AMD's growth trajectory.

Analysts caution, however, that long-term challenges persist, including potential inflationary pressures and a volatile trade environment that could strain AMD's cost structure and profitability.

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How To Buy AMD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Advanced Micro Devices’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, AMD has a 52-week high of $227.30 and a 52-week low of $113.06.