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Why AMD (AMD) Stock Is Up Today

What Happened?

Shares of computer processor maker AMD (NASDAQ:AMD) jumped 4.6% in the afternoon session after Citi analyst Atif Malik upgraded the stock to Buy from Neutral and raised his price target to $575 from $460, making the case that "the market has yet to fully recognize AMD as a legit second source in the GPU market."

The note centres on AMD's custom MI450 chips, which Citi believes give Meta Platforms lower total cost of ownership than Nvidia alternatives, backed by a six-gigawatt, four-year supply deal that includes a 160 million-share warrant and begins ramping with an initial one-gigawatt tranche in the second half of 2026. Citi projects AMD's AI GPU revenue reaching $33 billion near term and expanding to $50.8 billion thereafter.

Is now the time to buy AMD? Access our full analysis report here, it's free.

What Is The Market Telling Us

AMD's shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 7% on the news that the Nasdaq rebounded, up 1.8%, as Trump's Iran peace deal announcement released the rate pressure that weighed on the sector all week.

Semiconductor stocks trade at elevated multiples on future earnings, making them disproportionately sensitive to interest rates. Oil falling more than 3% and the 10-year Treasury yield dropping to 4.47% released the rate hike pressure that drove the sector's worst week since 2020.

The structural AI demand story never broke: Intel's BofA double upgrade to $135 earlier in the day confirmed hyperscalers are placing real production orders at domestic foundries, and AI infrastructure capex commitments remained intact.

AMD is up 131% since the beginning of the year, and at $515.92 per share, it is trading close to its 52-week high of $542.52 from June 2026. Investors who bought $1,000 worth of AMD's shares 5 years ago would now be looking at an investment worth $6,326.

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By Katie Paul

June 12 (Reuters) - Meta CEO Mark Zuckerberg has ‌said that the social media ‌giant has made mistakes on its AI ​transformation, in an internal memo seen by Reuters.

In the memo, Zuckerberg describes the rapid advances in AI ‌and the ⁠challenges bought on by the boom in the technology, ⁠as well as how it has affected the company.

"Given the complexity ​of these ​changes, we've ​made mistakes and ‌will almost certainly make more," Zuckerberg said, adding that he is also "focused on providing as much stability as possible" going forward.

He said ‌Meta will try ​to find new roles ​for ​employees reassigned to train AI ‌models and does not ​expect ​further company-wide layoffs this year.

Meta declined to comment on the memo ​when ‌contacted by Reuters.

(Reporting by Juby ​Babu in Mexico City; Editing ​by Arun Koyyur)

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Key Points

Nvidia continues to dominate its industry. Sandisk is thriving from the memory chips shortage. Amazon and Microsoft have thriving cloud computing units. 10 stocks we like better than Nvidia ›

There are several strong artificial intelligence (AI) stock picks available in the market right now. The AI infrastructure build-out is expected to last through at least 2030, so scooping up shares now with a long-term investing mindset is a smart way to approach the current market environment. These five in particular look like solid buys right now.

Image source: Getty Images.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Nvidia

Nvidia(NASDAQ: NVDA) has been the top AI stock pick since 2023 for a good reason: Its products sit at the core of the AI build-out. Nvidia makes GPUs (graphics processing units), which are the primary computing units deployed in data centers to handle AI workloads. Though it's already the world's largest company by market cap, Nvidia continues to see incredible growth, with its revenue rising 85% in its most recent quarter.

Its growth is far from over, given projections that annual data center capital expenditures will rise to the $3 trillion to $4 trillion range by 2030. That's a major, long-term investing opportunity. With Nvidia's chips likely to be at the center of that, it's well worth buying its shares now.

Sandisk

Because of the AI infrastructure build-out, demand for memory chips now far exceeds supply, and the companies that make those chips are profiting from the shortage. When the supply of any commodity lags behind rising demand, basic economics dictates that the commodity price will soar, and that's exactly why Sandisk (NASDAQ: SNDK) has done so well lately. It makes NAND memory for solid-state drives (SSDs) for long-term data storage in data centers. Its revenues and profits are undergoing monstrous growth, and even though the stock has risen by a tremendous amount over the past year, it doesn't appear to be stopping.

Wall Street analysts expect 336% growth during Q4 of its fiscal 2026 (which ends this month), and 122% in fiscal 2027. With the memory chip crunch expected to persist for years, that makes Sandisk a solid investment pick right now.

Microsoft

Microsoft(NASDAQ: MSFT) used to be one of the more popular investment options in the AI realm. However, the market has lost some faith in it, and the stock is down around 25% from its all-time high. Yet all that Microsoft has been doing is growing its two primary AI divisions.

Microsoft's annual recurring AI revenue (from products like Copilot) crossed $37 billion last quarter, up 123% year over year. Its cloud computing division, Azure, saw 40% revenue growth, reflecting the huge demand for AI computing resources. Microsoft looks like a bargain buy right now, and investors should scoop up shares of this proven winner before it returns to setting new all-time highs.

Meta Platforms

Meta Platforms(NASDAQ: META) is probably the biggest wildcard among the four AI hyperscalers. It doesn't rent out its computing capacity to others, as CEO Mark Zuckerberg claims it's using it all. So, all of its AI spending has gone into boosting its own capabilities, which has worked out well for it on the advertising front.

Meta Platforms operates the social media platforms Instagram, Facebook, Threads, and WhatsApp, and advertising on these platforms generates nearly all of Meta's revenue. Meta has used its AI investments to improve the effectiveness of its ad platform, which has led to solid 33% revenue growth. However, investors want more.

Meta is working on "more" with some products like AI glasses and a personal superintelligence model. If either of these two is a hit, Meta's stock could be primed for a major upside. Even if they don't pan out, Meta's ad business is still a solid reason to buy and hold the stock.

Amazon

Although many may focus on Amazon's (NASDAQ: AMZN) e-commerce business, as an investor, I prefer to look at its cloud computing unit, Amazon Web Services (AWS). AWS provides more than half of Amazon's operating profits, so it's one of its most important business units. In Q1, it grew revenue by 28% year over year -- its best pace in nearly four years. With demand for cloud computing capacity booming and Amazon spending $200 billion on data center capital expenditures this year alone, the growth rate for AWS will likely explode in the next few years.

Given that AWS' profit margins are substantially better than those of the e-commerce segment, this should lead to outsize growth on the bottom line, which is why I expect Amazon to be one of the best-performing stocks over the next few years.

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Keithen Drury has positions in Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Best Buy (NYSE:BBY) is partnering with Meta to open hands-on Meta Lab experiences in more than 50 stores, giving shoppers direct access to AI and VR products. The company is also rolling out GEEKOM Mini PCs in stores, expanding beyond their prior online focused availability. Both moves highlight a push toward in store experiential tech and compact computing options for customers.

For investors watching NYSE:BBY, these product and in store changes sit against a share price of $77.1. The stock is up 8.6% over the past week and 34.8% over the past month, with returns of 11.4% year to date and 12.3% over the past year, while the 5 year return is down 12.6%.

Hands on Meta Lab experiences and the addition of GEEKOM Mini PCs give Best Buy more ways to draw tech focused shoppers into stores and broaden what those shoppers can buy in person. Readers can track how these in store experiments develop over time and how they fit into Best Buy's efforts to stand out in consumer electronics retail.

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📰 Beyond the headline: 1 risk and 5 things going right for Best Buy that every investor should see.

For Best Buy, the Meta Lab rollout and the wider availability of GEEKOM Mini PCs both point to the same goal: pulling more high-value tech purchases back into its stores and ecosystem. Meta Labs give shoppers a reason to visit a physical location to try AI glasses and VR headsets in person, which is harder for online-only rivals like Amazon to replicate. At the same time, stocking compact GEEKOM Mini PCs in store shortens the gap between online research and checkout, especially for customers comparing against alternatives from players such as Walmart or Target that focus more on broad assortment than hands-on guidance. These moves also sit neatly alongside Best Buy's focus on higher-margin services, because products that require setup, connectivity and ongoing support often create follow-on revenue opportunities.

How This Fits Into The Best Buy Narrative

The Meta and GEEKOM partnerships line up with the narrative that vendor relationships and in-store experiences can help support margins and reinforce Best Buy's role as a showcase for new technology. If these experiences fail to materially lift traffic or attachment of services, they could challenge the view that experiential retail and vendor-funded displays are enough to offset pressure from online competitors. The narrative highlights marketplace expansion and supply chain efficiency, but the specific impact of branded experiential zones like Meta Lab on long-term earnings is less clearly addressed.

Story Continues

Knowing what a company is worth starts with understanding its story.Check out one of the top narratives in the Simply Wall St Community for Best Buy to help decide what it's worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Experiential build outs such as Meta Lab can add complexity and cost to store operations, which may pressure margins if vendor support does not keep pace. ⚠️ Best Buy still competes with online heavyweights like Amazon and general retailers such as Walmart, so higher exposure to categories like computing and VR could tighten pricing and weigh on gross profit rates. 🎁 Partnerships that bring AI-focused hardware and compact PCs into stores may support higher-margin services like setup, warranties and subscriptions tied to Best Buy's existing capabilities. 🎁 Expanding assortment in emerging categories such as AI glasses, VR and Mini PCs can help Best Buy stay relevant as consumer electronics preferences shift and as analysts watch for new product-led revenue drivers.

What To Watch Going Forward

Investors may want to track whether Meta Lab locations see stronger traffic and conversion than the rest of the store base, and whether that shows up in categories such as wearables, VR and services. It is also worth watching how quickly GEEKOM Mini PCs gain shelf space, reviews and in-store promotion compared with more established desktop brands. Commentary from management on vendor funding, store productivity and attachment of Geek Squad or subscription services around these products could give clearer signals on how much these partnerships contribute to earnings over time.

To ensure you're always in the loop on how the latest news impacts the investment narrative for Best Buy, head to the community page for Best Buy to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BBY.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Meta Platforms Inc (Symbol: META) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making Meta Platforms Inc an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of META entered into oversold territory, changing hands as low as $414.50 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Meta Platforms Inc, the RSI reading has hit 29.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 48.0. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, META's recent annualized dividend of 2/share (currently paid in quarterly installments) works out to an annual yield of 0.41% based upon the recent $493.50 share price.

A bullish investor could look at META's 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on META is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.

Click here to find out what 9 other oversold dividend stocks you need to know about »

Also see: • Funds Holding MLPR • PRTG shares outstanding history • Top Ten Hedge Funds Holding MYO

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Shares of SpaceX traded around the middle of Friday's price range, as the most hyped IPO in years finally arrived in the broad stock market and immediately became one of the largest companies in the world. The IPO raised $75 billion, making it the largest initial public offering in history. It also values the company at roughly $1.8 trillion initially.

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This article first appeared on GuruFocus.

Advanced Micro Devices (NASDAQ:AMD) rose 1.96% in premarket after Citi upgraded the stock to Buy from Neutral and raised its price target to $575 from $460, arguing AMD's emergence as a second GPU source alongside Nvidia (NASDAQ:NVDA) is not yet reflected in the stock price. Analyst Atif Malik said most investors still view AMD primarily as a CPU play, with the current share price implying only a 60% probability of AMD achieving more than $50 billion in GPU sales by 2028.

The bull case centers on Meta Platforms (NASDAQ:META). Citi believes AMD is positioned to win the lion's share of GPU business at Meta, with custom MI450 chips offering lower total cost of ownership than merchant GPU products. AMD's previously announced six-gigawatt, four-year deal with Meta includes a 160 million share common stock warrant, with the first one-gigawatt tranche ramping in the second half of 2026. Citi estimates each gigawatt translates to roughly $15 billion in revenue, and now forecasts AMD AI sales of $33 billion in 2027, up 137% year-over-year, and $50.8 billion in 2028, up 54%.

On CPUs, Citi raised its 2030 total addressable market estimate to $136.7 billion from $131.5 billion, representing a 36% CAGR from $29.3 billion in 2025. The bank's 2026-2028 EPS estimates sit 12%-13% above Street consensus. Citi's $575 target is based on a sum-of-parts valuation placing the GPU business at $281 per share and CPUs at $204 per share.

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In recent weeks, Reliance Industries announced it will build a 168 MW AI‑ready data centre in Jamnagar, Gujarat for Meta to lease, while Meta committed $115 million to America's Workforce Academy to train and place thousands of data‑centre construction and operations workers in the US. Together, these moves highlight how Meta is pairing massive AI infrastructure build‑outs with control over the skilled labour pipeline, potentially tightening its grip on the broader AI hardware and services ecosystem. We'll now examine how Meta's India data centre partnership and workforce academy may reshape its AI‑driven investment narrative.

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Meta Platforms Investment Narrative Recap

To own Meta today, you have to believe its heavy AI spend will translate into stronger ad performance and new monetization, without letting capex and Reality Labs losses overwhelm margins and free cash flow. The Reliance India data center and America's Workforce Academy sharpen this debate but do not fundamentally change the near term picture: the main catalyst is still evidence that AI is lifting core ad economics, while the biggest risk remains AI and metaverse capex outrunning revenue growth.

The Jamnagar, Gujarat data center deal with Reliance is the clearest tie in here. It shows Meta continuing to scale AI compute through leased, renewable powered capacity in a key growth market, rather than owning every asset on balance sheet. That matters for how investors judge future capex intensity and potential dilution, and it sits alongside the workforce academy as part of the same AI infrastructure buildout that underpins the current bull and bear cases on the stock.

Yet against this AI buildout story, investors should also weigh how much rising capex and potential equity issuance could pressure free cash flow and future returns...

Read the full narrative on Meta Platforms (it's free!)

Meta Platforms' narrative projects $369.0 billion revenue and $111.2 billion earnings by 2029. This requires 19.7% yearly revenue growth and about a $40.6 billion earnings increase from $70.6 billion today.

Uncover how Meta Platforms' forecasts yield a $828.80 fair value, a 46% upside to its current price.

Exploring Other PerspectivesMETA 1-Year Stock Price Chart

Compared with the consensus story, the most cautious analysts already assumed revenue would reach about US$326.4 billion and earnings US$98.7 billion by 2029, yet still warned that AI capex could compress margins and extend payback periods, reminding you that reasonable people can look at the same Jamnagar and workforce academy headlines and come to very different conclusions about the balance of risk and reward.

Story Continues

Explore 59 other fair value estimates on Meta Platforms - why the stock might be worth just $689.41!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

A great starting point for your Meta Platforms research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free Meta Platforms research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Meta Platforms' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include META.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Shares of SpaceX traded around the middle of Friday's price range, as the most hyped IPO in years finally arrived in the broad stock market and immediately became one of the largest companies in the world. With Friday's gains, SpaceX is now valued above $2 trillion. CEO Musk owns 46% of the company, which includes the Starlink satellite internet services, X social media and xAI, Musk's artificial intelligence business.

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Quick Read

NVDA grows 85% yet trades at only 24x forward earnings, while AMD demands 68x despite slower growth and lower margins. AMD's 6 GW Meta deployment gives it a flagship hyperscaler commitment, but NVIDIA's networking revenue alone exceeds AMD's entire data center business. NVIDIA locked in $119 billion of supply commitments and launched an $80 billion buyback, while AMD still negotiates HBM4 capacity with Samsung. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD) both reported earnings in May, and the contrast says everything about today's AI hardware market.24/7 Wall St.

NVIDIA posted a $81.6 billion quarter built on Blackwell dominance. AMD posted $10.25 billion, with the Meta partnership reshaping its data center story. One is the incumbent. The other is the credible challenger finally getting customer commitments at scale.

Blackwell Carries NVIDIA. Meta and MI450 Carry AMD.

NVIDIA's Data Center segment hit $75.25 billion, up 92% year over year, with networking alone at $14.8 billion (+199%). That networking line is bigger than AMD's entire data center business. Jensen Huang framed it bluntly: "The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed."

AMD's quarter was smaller but accelerating. Data Center revenue reached $5.78 billion (+57%), and Lisa Su told investors "Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations."

The 6 GW Meta deployment, starting with a custom MI450 design, gives AMD something it has lacked: a flagship hyperscaler willing to bet on its accelerator roadmap.

One Sells the Whole Factory. The Other Sells the Best Alternative.

NVIDIA's platform sweep keeps widening. Vera Rubin pairs a custom CPU with Rubin GPUs, Dynamo 1.0 reportedly lifts Blackwell inference up to 7x, and partnerships with Marvell, Corning, Lumentum, and Coherent lock in the optics layer.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

AMD's counter is ROCm maturity, HBM4 collaboration with Samsung for the MI455X, and 6th Gen EPYC (Venice/Verano) with Meta as lead customer. Different shapes of moat.

Lens NVIDIA AMD Q1 Revenue Growth +85.2% YoY +37.9% YoY Non-GAAP Gross Margin 75.0% 55% Next-Q Guide $91.0B ~$11.2B Forward P/E 24 68

The valuation gap matters. AMD trades at a trailing P/E of 159 after a 128% YTD run. NVIDIA, despite reporting a $58 billion net income quarter, carries a forward multiple of 24. Cheaper than its smaller rival.

Story Continues

What Decides the Second Half

I will watch three things. First, whether MI450 customer forecasts translate into firm orders that show up in AMD's Q3 earnings report.

Second, NVIDIA's China exposure, since Q2 guidance excludes any Data Center compute revenue from China, leaving upside if policy shifts.

Third, supply. NVIDIA already locked in $119 billion of supply commitments, while AMD is still negotiating HBM4 capacity with Samsung.

Why I Lean NVIDIA Heading Into Summer

On a risk-adjusted basis, NVIDIA screens more favorably on the current data. The valuation spread is notable: AMD trades at 68x forward earnings while growing 38%, versus NVIDIA at 24x growing 85% with 75% gross margins, alongside a $80 billion fresh buyback and a 25x dividend hike.

NVIDIA shares have also cooled, down 8.2% since the May 20 report, while AMD rose 37.5%. The AMD case rests on Helios reshaping the competitive map; the NVIDIA case rests on scale, cash generation, and a cleaner near-term setup.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

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