AMD Stock Hits Record High After MEXT Acquisition and Wave of Bullish Analyst Upgrades

What's Going On With AMD Stock Tuesday? - Advanced Micro Devices (NASDAQ:AMD)

AMD's Latest Acquisition Tackles One Of AI's Biggest Bottlenecks The stock remained near record highs after rallying 6.98% on Monday. U.S. stock index futures were mixed ahead of the opening bell. Nasdaq futures were little changed, and S&P 500 futures edged slightly lower. AMD Acquires MEXT Advanced Micro Devices announced Monday that it has acquired MEXT, a developer of AI-driven memory optimization technology, to strengthen its data center and AI portfolio. Financial terms of the acquisition were not disclosed. The deal comes as memory has become a key bottleneck in modern data centers, where increasingly complex AI and high-performance computing workloads require faster and more efficient access to memory. Specifically, AMD said MEXT's predictive memory technology is designed to make flash storage behave more like DRAM, helping expand usable memory capacity while maintaining performance. As a result, the company expects the technology to improve infrastructure efficiency, lower the total cost of ownership and accelerate AI deployments. Additionally, AMD said MEXT's engineering team will strengthen its expertise in memory systems and AI infrastructure. Technical Analysis AMD remains in a strong long-term uptrend. The stock has surged 332.99% over the past year and trades 12.4% above its 20-day simple moving average and 114.4% above its 200-day moving average. However, momentum has softened. The MACD remains below its signal line, while the histogram is negative. That suggests buying pressure has eased and the stock may need a fresh catalyst to extend its rally. The broader trend remains constructive. The 20-day moving average is above the 50-day moving average, and the bullish golden cross formed in July 2025 remains intact. AMD is also trading near its 52-week high, where profit-taking could create resistance. Key resistance stands at $558.37, near the 52-week high. Initial support sits at $488.13, which aligns with the 20-day moving average. Earnings And Analyst Outlook The next major catalyst is AMD's estimated Aug. 4, 2026, earnings report. Wall Street expects earnings of $1.55 per share, up from 48 cents a year earlier, on revenue of $11.28 billion, compared with $7.68 billion last year. AMD trades at 182.4 times earnings, reflecting a premium valuation. The stock carries a consensus Buy rating with an average price forecast of $490.07. Recent analyst actions include: * Citigroup upgraded the stock to Buy and raised its price forecast to $575 on June 12. * Bank of America Securities maintained Buy and lifted its price forecast to $560 on June 11. * Barclays maintained Overweight and increased its price forecast to $665 on June 1. AMD Price Action AMD Stock Price Activity: Advanced Micro Devices shares were trading up 0.32% at $548.99 during premarket trading on Tuesday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why is Advanced Micro Devices stock surging today? By Investing.com

Investing.com -- Advanced Micro Devices stock surged 7.3% in morning trading to reach $549.01, touching a new all-time high of $558.37 intraday, as a wave of bullish analyst activity -- led by a Citigroup upgrade to Buy with a raised price target of $575 from $460 -- continued to reverberate through the session. Citigroup analyst Atif Malik argued that the market has been systematically undervaluing AMD as a GPU company, with the current stock price implying only a 60% probability that AMD achieves over $50 billion in GPU revenue by 2028, a threshold Malik believes is far more likely given the company's deepening relationship with Meta Platforms. The upgrade was anchored by AMD's multi-year agreement with Meta for 6 gigawatts of AI datacenter GPU capacity using custom MI450 chips, accompanied by warrants for 160 million AMD shares, with the first gigawatt tranche set to begin ramping in the second half of 2026. Adding to the bullish momentum, Wolfe Research separately stated today that there is substantial room for upside to consensus estimates for AMD in both 2026 and 2027, driven by incremental CPU strength and the potential for additional gigawatt-scale MI450 customers beyond Meta and Microsoft. AMD also led a $350 million investment in cloud-computing startup TensorWave, which plans to expand its data centers using AMD chips, reinforcing the company's ecosystem strategy. Citi's revised earnings estimates for AMD now sit 12% to 13% above Wall Street consensus for the 2026-2028 period. The broader market provided a powerful tailwind today, with the NASDAQ gaining 2.4% and the S&P 500 rising 1.5%, after a U.S.-Iran peace agreement pushed oil prices sharply lower, easing inflation concerns and reviving appetite for growth stocks. The entire AI chip sector rallied in tandem, with Micron, Nvidia, Intel, and Broadcom all trading higher, as investors rotated back into technology names that had faced pressure from geopolitical and rate-related uncertainty in prior weeks. Together, the Citigroup upgrade's reframing of AMD as a GPU-first business, Wolfe Research's same-day endorsement of upside to estimates, the strategic TensorWave investment, and a risk-on macro backdrop driven by geopolitical de-escalation combined to push AMD shares to a record intraday high, reflecting the market's growing conviction that the company's AI revenue trajectory is more powerful than consensus had previously assumed. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.