AMD Stock Surges 23% With A 7-day Winning Spree On KeyBanc Upgrade To $270
Advanced Micro Devices (AMD) – a manufacturer of x86 microprocessors and graphics processing units – hit 7-day winning streak, with cumulative gains over this period amounting to a 23%. The company market cap has surged by about $76 Bil over the last 7 days, and currently stands at $406 Bil.
The stock has YTD (year-to-date) return of 16.6% compared to 0.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Multiple Analyst Upgrades and Price Target Hikes
- What Is Happening With Advanced Micro Devices Stock?
- Advanced Micro Devices Stock Surged 100%, Here’s Why
- Triggers That Could Ignite the Next Rally In Advanced Micro Devices Stock
- Advanced Micro Devices Stock To $162?
- Why Advanced Micro Devices Stock Could Tumble
- Advanced Micro Devices Stock To $147?
- KeyBanc upgraded to ‘Overweight’ with a $270 target.
- Bernstein raised its price target to $225.
- Impact: Sustained positive momentum, Increased institutional buying
[2] Strong AI-Driven Industry Sentiment
- Surging demand for AI-related components like GPUs.
- Reports of AMD’s server CPUs being nearly sold out for 2026.
- Impact: Increased sector-wide investment, Expectations of future growth
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in AMD stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive (For details, see Buy or Sell AMD).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for AMD stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | AMD | S&P 500 |
|---|---|---|
| 1D | 7.7% | 1.2% |
| 7D (Current Streak) | 23.0% | -1.3% |
| 1M (21D) | 24.2% | 1.5% |
| 3M (63D) | 3.8% | 2.1% |
| YTD 2026 | 16.6% | 0.4% |
| 2025 | 77.3% | 16.4% |
| 2024 | -18.1% | 23.3% |
| 2023 | 127.6% | 24.2% |
However, big gains can follow sharp reversals – but how has AMD behaved after prior drops? See AMD Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 28 S&P constituents with 3 days or more of consecutive gains and 34 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 11 | 12 |
| 4D | 4 | 13 |
| 5D | 4 | 2 |
| 6D | 2 | 2 |
| 7D or more | 7 | 5 |
| Total >=3 D | 28 | 34 |
Key Financials for Advanced Micro Devices (AMD)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $22.7 Bil | $25.8 Bil |
| Operating Income | $401.0 Mil | $2.1 Bil |
| Net Income | $854.0 Mil | $1.6 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $7.7 Bil | $9.2 Bil |
| Operating Income | $-134.0 Mil | $1.3 Bil |
| Net Income | $872.0 Mil | $1.2 Bil |
While AMD stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.