Advanced Micro Devices (AMD 0.46%) stock managed to close out the past week of trading with substantial gains despite bearish momentum for artificial intelligence (AI). The company's share price gained 5.7% across the stretch. Meanwhile, the S&P 500 inched 0.1% higher after some big swings, and the Nasdaq Composite declined 0.5%.
AMD's valuation defied valuation gravity impacting AI stocks thanks to a strong showing at its investor day conference. Following its presentation, the stock saw a wide range of price-target hikes and ratings upgrades from analysts.
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AMD stock rises despite sell-offs in the AI category
Artificial intelligence stocks got hit with big valuation pullbacks as investors responded to general valuation concerns and reacted to macroeconomic and geopolitical risk factors. Despite some powerful selling momentum impacting the category, AMD's share price marched higher, thanks to information shared at the company's investor conference. The company continues to see room for significant market share expansion in the AI data center graphics processing unit (GPU) space and expects to continue gaining ground against Intel in the central processing unit (CPU) markets for PCs and servers.
What's next for AMD?
On the one hand, AMD has been scoring some meaningful wins in the AI processor category, with its recent deal with OpenAI potentially representing a major turning point in the company's positioning in the market. Improving expectations for the company's outlook in AI have helped power big gains for the company's share price, which is now up 104% across 2025's trading.
On the other hand, AMD stock still comes with some significant risk on the heels of its big gains. Pressure related to tech licensing from Arm Holdings, Nvidia's current dominance in GPUs for AI data centers, and margin pressures stemming from costs connected to gaining ground in the data center market were among the risk factors highlighted by analysts following the company's investor-day presentation.
