- AMD shares surged 11.04% Friday, closing at $449.04, with further gains in premarket trading
- Nvidia shares fell 4.47% premarket Monday amid US investigation of CEO Jensen Huang
- Other chip stocks rose Friday but showed mixed premarket moves Monday, highlighting sector volatility
AMD is emerging as a potential beneficiary of the pressure facing Nvidia and other semiconductor stocks. Its latest rally has strengthened the case for investors looking beyond the AI chip leader.
AMD shares jumped 11.04% on Friday to close at $449.04. The stock gained another 1.41% in premarket trading on Monday. Nvidia, meanwhile, closed Friday 2.78% higher at $186.64.
However, its shares fell 4.47% in premarket trading to $178.30 on Monday.
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The contrast highlights the volatility across the sector. Nvidia's latest weakness followed reports that US authorities were investigating whether CEO Jensen Huang had been targeted by foreign intelligence.
The company has also faced pressure from concerns over AI infrastructure spending and potential regulatory hurdles.
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AMD Gains Ground As Chip Stocks Rebound
Friday's recovery extended beyond AMD. Micron Technology rose 5.12% to $690, while Intel advanced 7.71% to $56.28. Qualcomm gained 5.52% to $165.41. Broadcom edged up 0.74% to $293.69.
Monday's premarket moves were mixed. Micron fell 2.90%, while Qualcomm slipped 0.99%. Intel declined 1.60%. Broadcom gained 1.17%, while AMD remained positive.
AMD's business momentum gives the rally a stronger foundation. The company reported third-quarter revenue of $13.38 billion, up 45% year-on-year. Data centre revenue nearly doubled to $8.55 billion.
CEO Lisa Su also forecast revenue growth of more than 80% in 2027. AMD expects fourth-quarter revenue of around $17 billion. This outlook has strengthened expectations around its AI business.
AMD has also indicated that its sales will surpass Intel's for the first time this quarter. NH Investment & Securities analyst Ryu Young-ho told Reuters that rivals such as AMD could attract more attention in the short term.
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