Why AMD Stock Is Jumping Today

Key Points

• AMD stock is rising today following news that bans on key technology exports to China have been lifted.

• Being able to sell its artificial intelligence (AI) processors in the Chinese market is a significant positive development for AMD.

• An investment firm raised its one-year price target on AMD from $175 per share to $200 per share.

• 10 stocks we like better than Advanced Micro Devices ›

Advanced Micro Devices (NASDAQ: AMD) stock is gaining ground again Tuesday. The company's share price was up 2.6% as of 12:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was down 0.2%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 0.3%. The stock had been up as much as 5% earlier in trading.

AMD's stock is rising today thanks to news that the Trump administration is suspending restrictions that prevented advanced semiconductors and other technologies from being exported to China. The semiconductor stock is also getting a lift from bullish analyst coverage.

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AMD stock rises on China news

The Trump administration has at least temporarily lifted export bans that prevented AMD from selling its high-end artificial intelligence (AI) processors into the Chinese market. The move is a concession as Trump aims to secure a trade deal with China, and it could wind up being a significant positive sales and earnings catalyst for AMD. While increased potential for a trade deal to be reached between the two countries is a beneficial development for AMD, the significance that the AI race holds for both countries along national security and economic lines suggests that substantial geopolitical risk factors are still on the table.

Is AMD stock headed to $200?

Before the market opened this morning, Bank of America published new coverage on AMD and raised its one-year price target on the stock from $175 per share to $200 per share. BofA's analysts think that the chipmaker's share of the central processing unit (CPU) market could rise from 20% in 2023 to 30% next year.

In addition to taking market share from Intel in the CPU space, Bank of America's analysts noted that AMD's processors are commanding a 17% pricing premium compared to offerings from its competitor. While AMD's performance in the CPU space will continue to be a key factor in the company's performance, sales results for its graphics processing units (GPUs) for AI data centers will likely be the biggest factor shaping the stock's next moves when the company reports its Q2 results on Aug. 5.

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Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.