On Wednesday, shares of Advanced Micro Devices (AMD) experienced a notable increase of around 8.5%, reflecting growing investor confidence ahead of the company's earnings report. The stock rally indicates a renewed optimism regarding AMD’s data-center business, which is expected to report results for the fiscal fourth quarter and full-year 2025 on February 3.
The surge in stock price is attributed to expectations of robust demand for AMD’s server CPUs, particularly as the company engages in AI-driven infrastructure spending. Analysts, such as John Vinh from KeyBanc, have suggested that AMD may exceed revenue forecasts due to strong interest in its latest-generation Turin processors. Vinh has also indicated that this segment could see growth of at least 50% by 2026.
Despite the positive momentum, some market observers caution that the recent stock movement could be a temporary bounce rather than a sign of a lasting trend reversal. While AMD has regained its 50-day moving average as a support level, it still remains well below recent peaks, with significant resistance levels yet to be surpassed.