The stock market is experiencing a pullback, but AMD’s (Advanced Micro Devices) price seems to be defying the trend. While the market is bleeding, AMD’s stock price has rallied 2.18%, with an increase of 3.78, according to Yahoo Finance AMD statistics. Nvidia (NVDA) was down 0.70%, and fellow chip-making competitor, Intel Corporation (INTC) was down 1.31%. AMD’s pivot from the market trend may come as a surprise to many investors.
What’s Pushing AMD’s Price As It Goes Against The Market?
AMD’s latest upswing could be due to President Trump lifting the ban on the export of advanced semiconductors and other technologies to China. The move aligns with President Trump’s goal of securing a trade deal with China. Increased technological exports to China could prove profitable for AMD and other semiconductor companies.
Bank of America (BoA) recently updated its outlook on AMD. BoA increased the company’s stock price target from $175 per share to $200. BoA believes AMD’s CPU (central processing unit) market share could rise to 30% by next year.
While AMD’s CPU market is expected to grow over the coming months, it is the GPU (graphics processing unit) market that may determine the stock price. Nvidia (NVDA) has seen a massive surge over the last few years as demand for GPU chips has gone up. The advent of AI platforms has propelled GPU demand globally. As AI continues to grow, so may the market for high-end GPU chips. The company’s GPU division will likely be key to the company’s future trajectory.
Also Read: Hassett: US Allows $15B Nvidia H20 Chip Sales, Orders 300K from TSMC
AMD’s Q2 results are due on Aug. 5, 2025. The report will shed more light on the company’s plans for the future and its growth over the last three months. How the market responds to the company’s Q2 report is yet to be seen.