Why Advanced Micro Devices Stock Gained 10% in September

Actions of Advanced microdevices (AMD 4.73%) they moved higher last month on more news, the Federal Reserve’s 50 basis point cut and general tailwinds in the semiconductor sector.

According to data from S&P Global Market Intelligence, stocks ended the month up 10%. As you can see from the chart below, the stock’s movement mirrored that of a VanEck Semiconductor ETFbut he gained at a greater rate, showing that, although he was subject to the same tendencies as his industry, he was able to overcome them.

AMD data by YCharts

AMD gains an advantage

AMD has generally been a winner in the AI ​​boom, although the company is just beginning to assert itself as a key supplier with its MI300 data center GPU, which saw strong growth in the second quarter.

In September, several small news items made the stock a winner.

First, AMD announced its “Advancing AI 2024” event, scheduled for October 10. The company plans to introduce its next-generation AMD Instinct accelerators and fifth-generation AMD Epyc server processors.

It’s no secret that artificial intelligence (AI) has taken center stage in the chip sector, and investors are paying close attention to AMD’s AI product offering. The stock rose 5% on Sept. 11 on heavy volume following that announcement.

Cathie Wood’s Ark Invest also added to its AMD holdings, buying 45,500 shares that week, a positive sign for investors closely following its moves.

The following week, Reuters reported a victory over him Intel to design a key chip for SonyHis PlayStation 6 and City Group reiterated AMD as a top AI choice. AMD also got a boost from the Fed’s interest rate cut, gaining 4.5% on September 19, along with a broader market rally.

Finally, AMD scored another win towards the end of the month ca Oracle Cloud Infrastructure said it will use AMD’s Instinct MI300X accelerators, a key gain for the new chip, which competes with Nvidiaits AI accelerators.

Image source: Getty Images.

What’s next for AMD?

All eyes will be on the AI ​​presentation on October 10, and the stock is likely to move on the news. Investors will be expecting some new products that can move the needle for AMD, especially since it seems best positioned to challenge Nvidia in the data center GPU market.

If AMD can execute on this opportunity, the stock could have a lot of room to run from here.