Advanced Micro Devices Jumps 19% on Google Cloud Deal and Strong AI Demand
Advanced Micro Devices shares surged 19% to close at $534.06, outperforming major indexes following a significant infrastructure partnership with Google Cloud and robust artificial intelligence capital expenditure forecasts.
📈MarketsPhoto: Motley Fool
Key points
- AMD stock rose 19% for the week to close at $534.06.
- Google Cloud chose AMD 5th Gen EPYC processors for new confidential computing systems.
- CoreWeave's raised 2026 capital expenditure guidance reassured investors about data center demand.
Advanced Micro Devices shares climbed approximately 19% by Friday's close compared to the previous week, reaching $534.06. Over the same timeframe, the S&P 500 gained 2.5%, and the Nasdaq-100 rose 2.4%. The rally outpaced the broader market as investors reacted to expanding enterprise technology demand and a major server deal.
The upward momentum accelerated after cloud provider CoreWeave issued a strong quarterly report and lifted its capital expenditure guidance for 2026 to a range between $37 billion and $39 billion. This heavy infrastructure spending alleviated concerns regarding a potential cooling in data center hardware purchases. Additionally, Google Cloud selected AMD's 5th Gen EPYC server processors to power the host infrastructure for its new confidential computing systems.
AMD designs computer processors and graphics chips, selling server equipment and PC components to major cloud providers. In its quarter ending September 26, 2026, the company posted $13.4 billion in revenue, representing a 45% year-over-year increase, while data center sales nearly doubled to $8.5 billion. The stock currently trades at a trailing price-to-earnings ratio of 117.6.
What to watch next: Investors are awaiting AMD's next earnings report scheduled for February 2, 2027, alongside upcoming reports from industry peers to monitor sector-wide data center spending.
Source Motley Fool — fool.com/coverage/market-movers/2026/11/14/why-advanced-micro-devic… ↗
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