What Is Going on With AMD Stock on Wednesday?

Advanced Micro Devices Inc. (NASDAQ:AMD) stock is up more than 2.5% at the last check on Wednesday as investors weighed continued AI infrastructure demand and an expanded partnership with Google’s parent company, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).

Google selected AMD’s fifth-generation EPYC processors for its new TPU 8tx AI computing system. Google Cloud executive Mark Lohmeyer said the partnership brings hardware-enforced confidential computing to cloud TPUs for the first time.

The agreement gives AMD exposure to AI infrastructure spending even when cloud providers deploy their own AI chips.

AMD has also benefited from investor rotation away from Nvidia Corp. (NASDAQ:NVDA) following a board investigation involving CEO Jensen Huang.

Goldberg Praises AMD’s Supply Execution

Seaport Research Partners semiconductor analyst Jay Goldberg said CEO Lisa Su has positioned AMD well while competitors struggle with manufacturing constraints.

"This was Lisa at her best. This is a company that’s executing very well," Goldberg said on The Circuit podcast.

"If you have capacity, you win and if you don’t have capacity, you get punished," he added.

Goldberg contrasted AMD’s position with Intel Corp. (NASDAQ:INTC), which has faced production and supply constraints.

Intel CFO David Zinsner similarly said on the company’s October earnings call, "I really see market share next year being a function of supply."

CPUs Remain Important To AMD

Goldberg said CPUs remain more important to AMD’s business than GPUs despite investor attention on its competition with Nvidia.

Google’s decision to use AMD EPYC processors alongside its own TPUs reinforces that opportunity.

Goldberg also argued that the recent semiconductor selloff went too far given continued orders and cloud spending, although he sees a longer-term risk from additional chip factories and data-center capacity expected in 2028.

"I don’t think we’re there yet," Goldberg said when discussing the possibility of excess GPU supply.

Anthropic IPO Adds Another AI Link

AMD is among seven cornerstone investors in a separate $26 billion private placement connected to Anthropic’s planned IPO.

The group also includes Alphabet, NVIDIA and more.

Dan Ives said the offering could be "a positive step for the tech sector" and expects strong institutional demand.

Technical Analysis

AMD shares were up 5.44% at $543.26 during premarket trading on Wednesday, according to Benzinga Pro data. The stock trades 5.1% above its 20-day SMA of $518.50 and 30.2% above its 200-day SMA of $418.54, while remaining 0.7% below its 50-day SMA of $548.56.

The stock’s RSI of 48.80 sits in neutral territory.

The 20-day SMA remains below the 50-day SMA, while the 50-day SMA stays above the 200-day SMA.

Key Resistance: $579.00

Key Support: $502.50

Analyst Outlook

AMD carries a Buy consensus rating with an average price forecast of $640.96.

Recent actions include Oppenheimer upgrading AMD to Outperform with a $600 forecast, UBS maintaining Buy while lowering its forecast to $700, and JPMorgan maintaining Neutral while raising its forecast to $575.

ETF Exposure

AMD carries a 9.47% weighting in the iShares Semiconductor ETF (NASDAQ:SOXX), 9.73% in the Defiance Inference AI Chip ETF (NASDAQ:AINF) and 9.17% in the Invesco AI and Next Gen Software ETF (NYSE:IGPT).

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