Advanced Micro Devices (AMD) is experiencing a rise in its stock price today, driven by a combination of positive sentiment and strategic investments. A significant factor contributing to this uptick is AMD's recent investment in Vultr, a GPU cloud provider, which was announced on December 18. This $333 million investment, led by AMD Ventures and LuminArx Capital Management, values Vultr at $3.5 billion and is aimed at expanding its international presence. Vultr's use of AMD's GPUs, alongside those from Nvidia, positions AMD well in the booming generative AI market, enhancing its growth prospects.
Additionally, AMD's stock is benefiting from a bullish technical pattern identified by a prominent analyst, suggesting a potential breakout. The analyst noted that AMD's recent trading pattern resembles a falling wedge, typically a bullish signal, indicating that the stock might be poised for a significant upward move. This technical analysis, combined with AMD's strategic investments, is likely bolstering investor confidence.
AMD's stock is currently trading at $127.52, reflecting a 2.00% increase from its previous close of $125.02 and a 1.76% rise from its opening price of $125.31.