What's Going On With AMD Stock?

Advanced Micro Devices, Inc. AMD shares are trading higher by 3.2% to $145.30 Thursday morning. The stock is rising after two key economic reports released Thursday that signal a stronger-than-expected economic recovery and potential benefits for the technology sector.

U.S. retail sales data for July exceeded expectations, with a robust 1% month-over-month increase, rebounding from June's stagnation. This figure far surpassed the anticipated 0.3% rise, highlighting a more resilient consumer spending environment.

Notably, electronics and appliance stores recorded a 1.6% increase in sales, underscoring a rebound in demand for technology products—an encouraging sign for tech companies like AMD.

In addition to the retail sales report, initial jobless claims fell to 227,000 for the week ending Aug. 9, coming in below the expected 235,000 and signaling easing concerns in the labor market.

The decline in jobless claims, coupled with a drop in continuing claims, suggests a strengthening labor market, which could translate into increased consumer spending power.

Impact on AMD

AMD, a major player in the semiconductor industry, stands to benefit from the positive economic outlook in several ways. First, the uptick in retail sales, particularly in electronics, could drive higher demand for AMD's processors and graphics cards, which are crucial components in consumer electronics.

Increased consumer spending on tech products often translates into higher sales and revenue for technology companies.

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Is AMD A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Advanced Micro Devices‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Advanced Micro Devices does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 18.09%, you'll need to buy a share of Orchid Island Cap by the Aug. 30, 2024. Once done, you can expect to receive a nominal payout of $0.12 on Sep. 27, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Advanced Micro Devices will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, AMD has a 52-week high of $227.30 and a 52-week low of $93.12.

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