Advanced Micro Devices Inc. (NASDAQ:AMD) stock rose nearly 1% in Tuesday’s premarket trading as improving risk appetite lifted growth stocks. Nasdaq futures gained 0.39%, while S&P 500 futures rose 0.20%.

The move offered some relief after AMD came under pressure following its second-quarter results, as investors looked past the earnings beat and focused on whether the chipmaker’s AI roadmap can drive faster data-center growth.

Recent Earnings

AMD stock fell nearly 9% in premarket trading on Aug. 5 despite the company reporting second-quarter revenue of $11.54 billion, above Wall Street’s $11.28 billion estimate.

Futurum Group CEO Daniel Newman said the results "were good," but added that investors were looking for a "blowout guide driven by Helios."

The reaction underscored rising expectations for AMD as investors look for evidence that its growing AI portfolio can translate into stronger revenue growth.

Analysts Still See AI Upside

Bernstein senior analyst Stacy Rasgon, who has an Outperform rating and a $600 price forecast on AMD, said the quarter was solid and that he saw nothing wrong with the results.

Rasgon noted that AMD expects data-center growth to accelerate in the second half of the year. Helios could further expand the company’s AI opportunity beginning in the fourth quarter.

AMD is also building out its technology portfolio to capture more of the fast-growing AI inference market.

Taalas Deal Expands AMD’s Inference Push

On Aug. 7, AMD said it will acquire Taalas, a Toronto-based startup that hardwires AI models directly into silicon. The acquisition adds another piece to AMD’s inference strategy and complements Helios.

Technical Analysis

AMD is trading 5.1% below its 20-day simple moving average ($500.20) and 7.5% below its 50-day simple moving average ($513.11), which tells you the recent swing is still pointed down on a short-term basis. At the same time, it’s holding 13.7% above the 100-day SMA ($417.46) and 48.5% above the 200-day SMA ($319.45), keeping the longer-term uptrend intact.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $591.39. Recent analyst moves include:

  • Argus Research: Buy (Raises Forecast to $625.00) (Aug. 6)
  • Rosenblatt: Buy (Raises Forecast to $700.00) (Aug. 6)
  • JP Morgan: Neutral (Raises Forecast to $550.00) (Aug. 5)

Top ETF Exposure

  • iShares Semiconductor ETF (NASDAQ:SOXX): 8.47% Weight
  • CoreValues America First Technology ETF (NYSE:USMD): 7.74% Weight
  • ARK Autonomous Technology & Robotics ETF (BATS:ARKQ): 6.87% Weight

Significance: Because AMD carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

AMD Stock Price Activity: Advanced Micro Devices shares were up 0.73% at $473.00 during premarket trading on Tuesday, according to Benzinga Pro data.

Image via Shutterstock

Read Next: