Advanced Micro Devices Inc. (NASDAQ:AMD) stock traded higher in premarket action Monday, recovering part of last week’s sharp decline as improving risk appetite lifted semiconductor stocks and other growth-oriented technology names.
AMD shares gained about 2% before the opening bell, while Nasdaq futures rose 0.67% and S&P 500 futures advanced 0.26%.
AMD Rebounds After Sharp Semiconductor Selloff
The recovery follows a difficult Friday session in which AMD shares closed down 10.86% amid a broad retreat across the semiconductor sector.
The weakness was largely linked to investor reaction following quarterly results from Broadcom Inc. (NASDAQ:AVGO). Although Broadcom reported solid financial results, the company maintained rather than increased its long-term AI semiconductor revenue outlook, triggering profit-taking across AI-related chip stocks.
Some market strategists also viewed the pullback as a buying opportunity. KKM Financial Chief Executive Officer Jeff Kilburg told CNBC on Friday that his firm reduced its AMD position before the recent decline and is now watching the stock for potential opportunities to add exposure again. Kilburg said semiconductor stocks had become “frothy,” but argued that the broader artificial intelligence trend “is not broken.”
AMD Unveils 2 Billion Pounds UK AI Investment Plan
Separately, AMD said Monday it will invest up to 2 billion pounds (about $2.7 billion) in the United Kingdom over the next five years to expand artificial intelligence infrastructure, scientific research, and workforce development.
The initiative includes partnerships with Imperial College London, Oriole Networks, and the University of Cambridge, where AMD and Dell Technologies Inc. (NYSE:DELL) will support the Zenith AI supercomputer and Sunrise fusion AI system.
AMD said the investment aligns with the U.K.’s AI strategy and will help strengthen the country’s sovereign AI capabilities and scientific research ecosystem.
Technical Picture Remains Constructive
With no major company-specific catalyst driving Monday’s move, AMD’s gains appeared to reflect the broader rebound in technology shares and the stock’s still-positive longer-term trend.
AMD is trading near its 20-day simple moving average of about $473.93, a level often watched by short-term traders. The shares remain 32.1% above their 50-day simple moving average of $358.72 and 92.7% above the 200-day average of $245.97.
The stock’s relative strength index stands at 54.49, indicating neutral momentum after a strong rally over the past year.
The 20-day moving average remains above the 50-day moving average, while the longer-term “golden cross” established in July 2025, when the 50-day average moved above the 200-day average, remains intact.
A key technical support level is around $393.50, a prior pivot area that sits above the 50-day moving average.
Investors Await Next Earnings Report
The next major catalyst for the stock is the company’s expected earnings report on Aug. 4, 2026.
Analysts currently expect earnings of $1.55 per share, up from 48 cents a year earlier, on revenue of $11.28 billion compared with $7.68 billion in the prior-year period.
AMD trades at about 155.5 times earnings, reflecting a premium valuation relative to many peers.
According to consensus analyst estimates, the stock carries a Buy rating with an average price forecast of $475.17. Recent analyst actions include Barclays raising its price forecast to $665, TD Cowen increasing its forecast to $600 and Mizuho lifting its forecast to $615.
ETF Exposure Could Amplify Moves
AMD also holds significant weightings in several semiconductor and technology-focused exchange-traded funds, including the iShares Semiconductor ETF (NASDAQ:SOXX), the iShares Future AI & Tech ETF (NYSE:ARTY), and the ARK Next Generation Internet ETF (NYSE:ARKW).
Large inflows or outflows in those funds can create additional buying or selling pressure in the stock.
Price Action
AMD Stock Price Activity: Advanced Micro Devices shares were up 1.85% at $475.00 during premarket trading on Monday, according to Benzinga Pro data.
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