The ongoing artificial intelligence (AI) boom has been one of the biggest driving factors for the growth of semiconductor and cloud computing stocks ever since late 2022. This fact is best exemplified by the staggering rise of the share price of Nvidia (NASDAQ: NVDA) – a rise that has, over the previous 52 weeks, amounted to 248.54%.
Still, while NVDA has been the darling of many investors and analysts – so much so that CNBC’s Jim Cramer named his dog after the blue-chip chipmaker – another firm from the industry took the spotlight on February 29 as it rose 9.06% within a single session – Advanced Micro Devices (NASDAQ; AMD) – after what appeared as a prolonged preparatory phase.
Why did AMD stock surge?
AMD’s strong performance on Thursday, February 29, comes as a result of the long-standing enthusiasm for the AI sector – both among retail investors and institutions – as well as the semiconductor giant’s own efforts.
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While it slightly missed analyst forecasts – and suffered from a brief selloff as a result – AMD’s latest earnings report showcased strong growth for its business, particularly when it comes to revenue from the firm’s data centers.
AMD is also not only ramping up production of its advanced MI300 AI chip but is also testing an even more powerful model – the MI400.
AMD stock price chart
While AMD’s February 29 performance, which saw it surge 9.06% within a single stock market session to a valuation above $300 billion for the first time ever – and continue rising 2.61% in extended trading – drew most of the attention, the semiconductor giant has generally been doing well in recent months.
The last 52 weeks, for example, saw Advanced Micro Devices stock rise 145.92% and AMD shares are up a further 38.93% since January 1, 2024.
The chip maker is also, despite some volatility and sideways trading, in the green in the last 30 days – 12.93% – and in the last full week of trading – 5.73%.
Finally, AMD stock’s last closing price of $192.53 constitutes a new all-time high for the shares – the latest in the series of new highs Advanced Micro Devices has reached in 2024.
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