Advanced Micro Devices (AMD) rose 5.76% to $215.51 in the afternoon trade on Monday, snapping a seven-session losing streak.
The chipmaker has been under pressure this month even after posting record third-quarter results earlier this month, that topped Wall Street expectations, as investors reassessed valuation and near-term growth expectations.
AMD has recently announced several major AI-related developments, including a new joint venture with Cisco and Saudi Arabia’s Humain to build data centers in the Middle East, along with expanded collaborations involving OpenAI, Oracle and other partners. Brokerages have remained broadly positive, with Citi calling AMD “king of the hill” after its analyst day, Raymond James saying chip stocks still have room to run, and Summit Research upgrading the shares on confidence in the company’s AI roadmap.
According to Seeking Alpha’s Quant Rating, AMD is rated Hold with a score of 3.43 out of 5, receiving A for profitability and momentum, an A- for growth, but a D- in valuation and a C in revisions.
While SA analysts recommend Buying the stock.
Turning to the Wall Street, 40 of 51 analysts rate the stock a Buy or higher and 11 recommend Hold.
An analyst said AMD’s recent partnerships and product updates show the company has moved from “watch for AI traction” to ‘arrived’ in the AI market. The analyst added that even under a conservative outlook, “AMD’s EBITDA could expand 3.33x… making current pullbacks an attractive accumulation opportunity.”
Despite today’s rebound, AMD remains down about 14% for the month, while it has surged roughly 72% YTD.