Advanced Micro Devices (AMD 1.31%) stock is seeing another day of gains in Tuesday's trading. The semiconductor company's share price was up 6.1% as of 1 p.m. ET. Meanwhile, the S&P 500 index was up 1%, and the Nasdaq Composite index was up 1.5%.
AMD's valuation is moving higher today following an announcement that the company has entered into a new partnership with HCLTech to develop artificial intelligence (AI), digital, and cloud solutions. The stock is also getting a boost from bullish momentum for the broader market stemming from favorable macroeconomic and geopolitical dynamics.
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AMD stock rises thanks to new partnership announcement
HCLTech announced today that it has entered into a partnership with AMD to develop innovation labs, training programs, and technologies that will help enterprises with digital transformation initiatives. The development centers created through the partnership will be used to test new technologies and reduce the time that it takes to bring new enterprise technology tools to market. HCLTech is an India-based IT consulting company, and investors may be excited about the potential for AMD to gain a bigger foothold in the country and take advantage of its tech development capabilities.
NASDAQ: AMD
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Bullish geopolitical and macroeconomic news is also pushing AMD stock higher
A ceasefire between Israel and Iran was announced today and has helped send the broader market higher. While the ceasefire has reportedly already been violated by both sides, the military actions appear relatively minor in the grand scheme of things -- and investors are relieved that there has been a de-escalation in the conflict.
Recent comments from Federal Reserve officials also suggest that the central banking authority may be warming up to the prospect of issuing an interest rate cut at its meeting next month. The market had previously assigned relatively low chances of a rate cut being delivered at the meeting, but Fed membership is now reportedly about evenly divided on what action to take next month.
While Fed Chair Jerome Powell said that the central bank will continue to monitor the impact of tariffs before making any cuts, investors are still excited that the potential for a cut next month has seemingly increased. Rate cuts would be a bullish development for AMD and other semiconductor stocks and could help support a continued rally for a leader in the industry.
