What's Going On With AMD Stock Wednesday?

Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading higher Wednesday morning, maintaining momentum from a significant surge earlier in the week following the announcement of a multi-year partnership with OpenAI. Here’s what investors need to know.

What To Know: The deal, which could unlock over $100 billion in revenue for AMD, will see the chipmaker supply up to six gigawatts of its GPUs to power OpenAI’s expanding data center infrastructure.

The strategic collaboration positions AMD as a key challenger to Nvidia in the booming AI chip market. In return for its hardware, OpenAI will receive warrants to purchase up to 160 million AMD shares, a potential stake of roughly 10%.

Wall Street has responded with a flurry of positive analyst coverage. Numerous firms, including Jefferies, Morgan Stanley and Wells Fargo, have raised their price targets for AMD, citing the massive revenue potential and enhanced market position.

While Goldman Sachs maintained a Neutral rating due to funding and customer concentration risks, the overall sentiment remains bullish on AMD’s strengthened role in the AI arms race.

AMD has a consensus Buy rating from analysts, according to Benzinga data. Recent price target changes range from $216 to $300, with a majority of analysts raising targets well above current levels, suggesting shares may have more room to run.

Read Also: AMD’s $100 Billion OpenAI Deal Could Supercharge AI Chip Growth, Analyst Says, Projecting Massive Earnings Boost By 2030

Benzinga Edge Rankings: Underscoring this bullish sentiment, Benzinga Edge proprietary stock rankings show AMD with an exceptional Growth score of 94.34 and a high Momentum score of 90.73.

AMD Price Action: Advanced Micro Devices shares were up 5.24% at $222.49 at the time of publication Wednesday, according to Benzinga Pro. The stock is trading near its 52-week high of $226.70.

AMD stock has broken above its 50-day moving average of $167.51, indicating a bullish trend. Key resistance is noted near the 52-week high of $226.70, while support is likely found around the 50-day moving average.

Read Also: Fear Of An AI Bubble? This Time Is Different, Goldman Says

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.

Image: Shutterstock