Advanced Micro Devices (AMD 5.54%) surged 5.7% Tuesday to close at $172.40, gaining ground despite a mixed Q2 earnings report. The stock saw a sharp spike in trading volume, with 94.4 million shares exchanged, nearly 80% above its three-month average of 53 million. AMD stock trades about 5.5% below its 52-week high of $182.50.
The broader market showed a split tone. The Nasdaq Composite climbed 0.4%, supported by strong performance in the semiconductor sector, while the S&P 500 slipped 0.1% amid more cautious trading in large-cap names.
AMD's peers also posted gains. Nvidia (NVDA 0.60%) rose 0.8% to $180.77, and Broadcom (AVGO 0.57%) added 0.7% to close at $303.76, as investors rotated back into chip stocks on optimism around potential U.S. tariff exemptions for domestic semiconductor manufacturers.
Despite a record $7.7 billion in second-quarter revenue, AMD's margins declined because of an $800 million inventory write-down tied to U.S. export restrictions. However, the company guided for third-quarter revenue of approximately $8.7 billion, easing concerns and reinforcing investor confidence. Analysts remain bullish on AMD's positioning in the AI accelerator and data center markets.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, August 7, 2025.
