Shares of Advanced Micro Devices (AMD) extended gains to an all-time high of around $253 on Friday, as investors continued to flock to the chipmaker ahead of its Nov. 4 results.
Analysts currently expect the semiconductor giant to earn $0.97 per share in its fiscal third quarter, up from $0.76 in the same quarter last year.
As of this writing, AMD stock is up more than 200% compared to its year-to-date low in early April.
The recent rise in AMD stock is primarily attributed to two transformative artificial intelligence (AI) partnerships.
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A groundbreaking deal with OpenAI for 6 gigawatts of computing capacity.
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A strategic agreement with Oracle Cloud for the deployment of approximately 50,000 next-generation MI450 Instinct GPUs starting in the third quarter of 2026.
Investors also generally responded positively to the company’s revenue-sharing agreement with the US government in August, as it essentially cleared the way for it to resume business in one of its key markets, China.
AMD’s fundamental performance strongly supports the rally, with second-quarter revenue reaching $7.69 billion, up 32% year-over-year, with expectations for third-quarter revenue to hit $8.7 billion much higher.
Barchart options data for AMD stock also supports the bullish scenario. Contracts expiring in mid-January 2026 currently have the upper limit set at around $298.
In the short term, the implied trading range through the end of October is approximately $237 to $265, indicating potential for another 5.63% return next Friday.
In summary, the combination of strategic AI partnerships, strong financial performance, and expanding market share suggests AMD stock is well positioned for continued growth.
Meanwhile, in terms of price-to-sales (P/S), they are also trading at a deep discount to Nvidia (NVDA).
Wall Street analysts continue to see significant upside for AMD stock.
The consensus rating on AMD stock remains at “Strong Buy” with price targets reaching as high as $310, indicating potential for another 24% gains from here.