AMD Stock Rallying Into Earnings – Is A Break Above $250 Resistance on the Cards?

Advanced Micro Devices stock (AMD) is currently trading at $244.67 , 0.63% lower on the session ahead of earnings. Despite this slight dip, the stock has demonstrated substantial growth over the past year, rewarding investors with a 114.3% increase. The question now is whether AMD can sustain this momentum and break through the $250 resistance level with earnings up after the closing bell.

The market anticipates strong results, with analysts looking for revenue of $9.67 billion. This represents a significant 26.28% year-over-year increase. Earnings per share (EPS) are also expected to show robust growth at $1.32, having hit $1.09 this time last year.

The company's 52-week range highlights the impressive run, spanning from a low of $76.48 to a high of $267.08. AMD's 50-day simple moving average (SMA) stands at $251.07, while the 200-day SMA is $226.33, indicating a solid upward trend despite recent price fluctuations.

Several key developments have recently influenced AMD's stock performance, contributing to the bullish sentiment. The most notable is the strategic partnership with OpenAI, announced in October 2025. This multi-year agreement involves AMD supplying up to six gigawatts of its AI processors to OpenAI over the next five years.

The deal allows OpenAI to diversify its semiconductor supply, reducing its dependence on Nvidia. As part of the agreement, OpenAI has an option to acquire a 10% stake in AMD, amounting to 160 million shares, contingent on meeting specific performance targets. This announcement triggered a significant 35% surge in AMD's stock price, reflecting strong investor confidence.

Following the OpenAI deal, AMD secured another crucial agreement with Oracle. Oracle plans to deploy 50,000 units of AMD's MI450 AI accelerators in its global data centers, commencing in the third quarter of 2026. This large-scale deployment further validates the demand for AMD's AI hardware solutions and has contributed positively to the company's stock performance.

Price Targets

In November 2025, AMD reported record revenue of $9.25 billion for the third quarter, marking a 36% year-over-year increase. The company's non-GAAP earnings per share of $1.20 surpassed analyst expectations. CEO Lisa Su highlighted strong demand across various product lines, including EPYC data center processors, Ryzen CPUs, and Instinct AI accelerators. Despite these impressive results, AMD's stock experienced a slight decline of 3.7% following the earnings report, potentially due to profit-taking.

AMD's optimistic projections for AI chip revenue have also bolstered investor sentiment. The company anticipates AI-related revenues to increase by an average of 80% over the next three to five years. This positive outlook has led analysts to raise their price targets for AMD stock, with some setting targets as high as $270 per share.

At the OCP Global Summit, AMD unveiled its ‘Helios' rack-scale design, integrating next-generation MI400 series chips. This innovation is expected to enhance AMD's competitiveness in the AI and data center markets. The market has responded positively to this announcement, with analysts viewing it as a crucial step in AMD's growth trajectory.

However, investors should be aware of potential risks and challenges. The semiconductor industry is highly competitive, and AMD faces intense competition from established players like Nvidia and Intel. Any setbacks in product development, manufacturing delays, or loss of market share could negatively impact AMD's stock price.

Furthermore, the implied stock price movement based on options expiring shortly after the earnings announcement suggests a potential move of about ±7.5%. This indicates that the market anticipates a significant price change following the earnings release, reflecting uncertainty about the company's future performance. A disappointing earnings report or a cautious outlook could lead to a sharp decline in the stock price.

AMD's intraday high stands at $252.65, with the stock having tested the resistance level before markets pulled back. A decisive break above $250, supported by strong earnings and positive guidance, could trigger a further rally. Any negative surprises could well see a pullback to retest support, with the $220-$225 level potentially on the cards.

The market will be closely watching CEO Lisa Su's commentary on the company's future prospects and its ability to maintain its competitive edge in the rapidly evolving semiconductor landscape. “We are confident in our ability to continue driving growth and delivering value to our shareholders,” Su stated recently, reinforcing the company's optimistic outlook. The market now awaits to see if the earnings report will justify that confidence.