AMD stock is trading around $555 as AI demand, Meta and OpenAI’s partnership, and data center growth support the outlook. See today’s AMD stock price prediction and key price levels.
Advanced Micro Devices (NASDAQ: AMD) hit about $55 and is up over 150% year to date. Analysts speculate that AMD is on pace to match NVIDIA, especially with its growing data infrastructure and firm contracts with Meta and OpenAI.
With AMD’s market cap approaching $900 billion and AMD stock up more than 150% in 2023, the focus now is on delivering results.
Why is AMD’s stock price rising?
AI is rapidly changing many industries, and AMD is growing with it. AMD’s most recent fiscal quarter saw record revenue of $10.25 billion (up 38% year-over-year) and revenue from data centers of $5.78 billion (up 57% year-over-year). Demand for AMD’s EPYC processors and Instinct AI accelerators will drive revenue for this data center.
We see this data center revenue trend continuing for the foreseeable future for AMD. Second-quarter revenue is expected to be approximately $11.2 billion, with gross margins of 56%. This is a positive change from previous margins, as product concentration and combination will improve AMD’s margins, while the Association for Computing Machinery will support and accelerate AMD’s investments in software and systems research and development.
AMD could also benefit from recent reports that several Chinese companies have approved purchases of advanced AI processors, opening up new sales channels if export conditions are favorable.
AI partnerships power long-term growth
What AMD has over its competitors is that it has many customers in the AI industry.
Both Meta and OpenAI plan to invest in six additional generations of AMD AI infrastructure, which equates to 6 gigawatts per company. These generations include AMD’s MI450 accelerator, 6th generation EPYC processors, and AMD’s Helios rack-scale integrated system. Thanks to these projects, AMD will be able to more accurately predict customer demand.
Following these milestones is the commercial launch of the MI400 series and Helios architecture. This will be a success if AMD can improve its hardware and ROCm software and commercialize an integrated AI system that competes with full NVIDIA stack systems.
AMD Stock Price Forecast: Key Levels to Watch
AMD stock is on a healthy uptrend after rebounding from the $529.37 to $537.95 support zone, which includes the trendline and the convergence of the 50-day EMA.
Stock prices are in an upward cycle of highs and lows. The 100-day EMA at $477.63 has a strong positive slope, reinforcing the positive outlook. The RSI is 56, indicating positive momentum, and the stock still has room for upward correction.
The next resistance level is $584.05. A break above this level could push the stock price to $608.63 and then $634.89.
Barring an upward correction, once the support at $537.95 is broken, the next support will be at $501.54, ending the positive momentum.
Increased demand for advanced AI systems and data centers provides a positive outlook for AMD’s systems.
Important points
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The AI projects launched by Meta and OpenAI will generate revenue for AMD in the coming years.
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Multi-year AI implementation with Meta and OpenAI provides significant long-term revenue visibility.
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AMD’s future expansion period is likely to be influenced by the MI450 platform and Helios architecture.
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As for future AMD stock movement, the expected resistance level is $584.05 and the expected support level is $529-538.
