AMD stock soars 24% as AI optimism lifts chip stocks
Investor sentiment has responded positively to AMD's AI potential
As of April 10, 2025, Advanced Micro Devices, Inc. (NASDAQ: AMD) is trading at $96.84, showing a sharp intraday surge of approximately 23.7% from the prior close.
The trading range on the day has been unusually wide, with a low of $76.14 and a high of $97.87, underlining intense investor activity and volatility following news developments. From a technical standpoint, AMD’s recent movement above both the 50-day and 200-day moving averages signals a bullish reversal.
In terms of support and resistance, the $90 level—coinciding with the 200-day SMA—now serves as the nearest support. Additional support lies at $85, matching the 50-day average. Resistance is expected at the psychologically significant $100 level, a round-number barrier that typically attracts sell orders. A clean breakout above this threshold could open the door to renewed bullish sentiment and momentum-driven gains.
AMD stock price dynamics (February 2025 - April 2025). Source: TradingView.
Momentum indicators such as the Relative Strength Index (RSI) have spiked following the price surge. RSI is approaching overbought territory above 70, which may signal short-term exhaustion unless further catalysts materialize.
Market context and recent developments
The broader semiconductor landscape continues to be driven by developments in artificial intelligence, high-performance computing, and data center demand. AMD has strategically aligned its growth narrative with these themes, focusing on AI accelerators and GPU compute capabilities. A recent note from TD Cowen, which trimmed AMD’s price target to $110 from $115, maintains a cautious but constructive outlook. The firm's analyst, Joshua Buchalter, stressed the need for AMD to showcase clear execution in the AI space to justify higher valuations. The emphasis was placed on the acceleration of the MI355 GPU's launch timeline, signaling AMD’s intent to compete more aggressively with NVIDIA’s dominance in the AI segment.
Cowen's note also highlighted a moderation in near-term expectations for data center GPU revenues, underscoring that despite strong product launches, execution risks and competitive pressures remain. Nonetheless, the firm kept its “Outperform” rating, reflecting long-term confidence in AMD’s strategy. The company’s software ecosystem and broader AI platform readiness will be key differentiators as hyperscalers evaluate alternatives to NVIDIA.
Investor sentiment has responded positively to AMD's AI potential, evidenced by today's price action. However, valuation remains a concern, especially if execution stumbles or macroeconomic factors, such as rising rates or softening enterprise spending, weigh on growth.
Price scenarios
Looking ahead, AMD’s short-term price trajectory appears bullish, supported by the technical breakout and improved investor confidence. Should the stock remain above $90 and build support above $95, there is a high probability of testing the $100 level within the coming weeks. A decisive move above $100 could trigger technical buying and algorithmic momentum, pushing the stock toward $110—the revised TD Cowen target.
In a downside scenario, a failure to sustain above $90 could result in a retracement to the $85-$87 range, where buyers may re-emerge. A break below $85 would signal a potential loss of momentum, with possible reversion toward the $80 level. For now, however, the bias remains tilted toward the upside, contingent on AMD maintaining its strategic trajectory in AI and data center markets.
Last month, AMD traded around $100 as it attempted to rebound from a prolonged downtrend, supported by the 20-period EMA at $100.18. Despite resistance from longer-term EMAs signaling a broader bearish trend, a potential bullish MACD crossover hinted at an early trend reversal.
