Advanced Micro Devices Inc. (NASDAQ: AMD) shares rose 0.75% to $552.26 in premarket trading on Wednesday, following positive analyst revisions. Bank of America raised its price forecast for AMD to $620 from $550, while TD Cowen increased its target to $675. These adjustments come amid a favorable market backdrop, with Nasdaq futures up 0.49% and S&P 500 futures gaining 0.16%.
Key Details
Analysts noted that China remains a significant market for AMD, accounting for over 22% of its fiscal 2025 sales, although this is a decrease from more than 24% in fiscal 2024, according to the company's latest 10-K filing. The stock continues to trade in a well-defined uptrend, sitting 3.6% above its 20-day simple moving average of $535.08 and 13.2% above its 50-day SMA of $489.71.
Background
Despite the positive outlook, the moving average convergence divergence (MACD) indicator suggests that upside momentum has eased. Traders are currently watching resistance near $563.00, with support identified at approximately $495.50, where previous buying activity occurred.
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The upward revision of AMD's price targets could positively influence semiconductor stocks, particularly those with exposure to the Chinese market. Investors may react to the bullish sentiment by reallocating funds into semiconductor ETFs or directly into AMD shares.
Watch for AMD's next earnings report, scheduled for later this month, which could provide further insights into its performance and market position.