What's Going On With AMD Stock?

Advanced Micro Devices, Inc. AMD shares are trading lower by 1.4% to $137.48 during Wednesday’s session. NVIDIA Corp’s earnings report Wednesday evening is poised to have a significant impact on Advanced Micro Devices, as the two companies compete directly in high-performance computing and AI accelerators.

What To Know: While Nvidia dominates the AI chip market, AMD has been ramping up its efforts to challenge that dominance with its MI300 series accelerators and EPYC processors, which target AI and data center applications.

A strong Nvidia report could benefit AMD indirectly by affirming continued robust demand for AI infrastructure and high-performance computing. Such results would validate AMD's strategic investments in AI-focused products, fueling optimism around its ability to capture market share in a rapidly expanding sector.

Read Also: Target Q3 Earnings: Supply Chain Chaos Hits Bottomline, Slashes Annual Profit Outlook, Stock Tanks

However, if Nvidia's results or guidance signal a slowdown in AI-related spending, AMD could face headwinds, especially as it seeks to gain traction in a market already dominated by Nvidia. Slower adoption of AI hardware could delay the payoff for AMD's ambitious roadmap, which relies on its ability to penetrate data center and AI workloads dominated by its rival.

AMD also risks unfavorable comparisons during this critical earnings season. Nvidia's efficiency in scaling AI solutions highlights the steep challenge AMD faces in winning over customers and optimizing its own supply chain for large-scale deployments.

With Nvidia's results expected to ripple through the semiconductor industry, AMD's stock could see heightened volatility as investors reassess growth prospects across the sector.

Read Also: MicroStrategy Upsizes Convertible Notes Offering To $2.6 Billion For Bitcoin Purchases

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 41.97%, you'll need to buy a share of ZIM Integrated Shipping by the Dec. 2, 2024. Once done, you can expect to receive a nominal payout of $2.81 on Dec. 9, 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 $116.37.