AMD surges 150% to $500 as Aug. 4 earnings fuel split talk

Advanced Micro Devices shares have surged more than 150% this year to trade above $500, with the Aug. 4 earnings report fueling speculation the chipmaker could announce a stock split.

The rally mirrors a broader semiconductor sector upturn. The Nasdaq climbed Tuesday as investors bought chip stocks including Micron, AMD and Nvidia, according to market data. The tech-heavy index is attempting to hold ground near its 50-day moving average as earnings season ramps up. The Philadelphia Semiconductor Index has also gained this year, reflecting sustained demand for AI computing hardware.

AMD's second-quarter results are due after the close on Aug. 4. The company has not yet disclosed revenue or earnings guidance for the period. In the first quarter, AMD reported revenue of $7.1 billion, with its data center segment contributing a growing share. Analysts expect the chipmaker to report strong data center revenue growth, a key operating metric for semiconductor companies, as enterprise and cloud customers increase AI infrastructure spending.

A stock split would make AMD's shares more accessible to retail investors. The company last executed a 4-for-1 split in August 2022, when shares traded near $100. At current levels above $500, the stock has more than quintupled since that split. Nvidia, AMD's primary rival in the AI chip market, completed a 10-for-1 split in June 2024 when its shares traded above $1,200. Stock splits have historically been followed by further gains, though they do not change a company's underlying valuation.

The broader earnings backdrop supports the bullish case. The Magnificent 7's total Q2 earnings are expected to jump 28.7% year over year on 25.1% higher revenues, according to Zacks data. Excluding the Mag 7, the rest of the S&P 500 is still projected to post 25.3% earnings growth. Technology companies are shaping up for another blockbuster quarter, the data show.

AMD's data center segment will be the primary focus for investors. The company has been gaining market share in AI accelerators, competing directly with Nvidia's H100 and Blackwell chips. Any commentary on customer adoption or production timelines for AMD's MI300 and next-generation MI400 series could move the stock. The company also faces competition from custom chip designs by cloud providers such as Amazon's AWS and Google.

If AMD delivers a beat on Aug. 4 and raises guidance, the stock could extend its gains and push split speculation further. A miss, however, could test support levels after the stock's 150% year-to-date run. Investors will watch the data center revenue figure and forward guidance for signs of sustained AI chip demand. The stock's next catalyst beyond earnings would be any product announcements at upcoming industry events.

This article is for informational purposes only and does not constitute investment advice.