Why Is Advanced Micro Devices (AMD) Stock Surging Today?

AMD shares rocket upward as chipmaker continues eating NVIDIA's lunch.

The AI Gold Rush

Another day, another semiconductor rally—AMD's latest surge comes as institutional investors pile into anything with 'AI accelerator' in the description. The stock's climbing faster than a crypto trader's blood pressure during a flash crash.

Market Momentum

Wall Street's suddenly remembering that competition breeds innovation—or at least better stock performance. AMD's chips are gaining traction in data centers, giving the market exactly what it wants: an alternative to the usual suspects.

Because nothing makes financiers happier than having two horses to bet on in the same race—even if they're both just running in circles around the same track.

Huge Oracle RPO shocks Wall Street

Oracle reported earnings that included $455 billion in total remaining performance obligations (RPOs), essentially future revenue for which it is already contracted and now must deliver on. The cloud infrastructure provider plans to deploy $35 billion in capital expenditures (capex) in its fiscal 2026, signaling demand is still WHITE hot for AI chips like those from AMD.

Whilewill likely remain the biggest winner here, AMD stands to capture a meaningful share of this spending. It may still be playing second fiddle, but the performance gap between its best chips and those from Nvidia is narrowing. With such a huge market, second place is still a great place to be.

Image source: Getty Images

AMD is in a solid position

Oracle's commitment helps cool fears in recent weeks that the AI data center spending spree was showing signs of slowing down. If it does, AMD and other chipmakers will be hit hard. The level of demand means chipmakers can expand margins by charging a premium that customers will pay. Less demand means fewer units sold at a lower price. But Oracle's earnings indicate this is a non-issue, at least for the time being.

While Nvidia is still the best AI infrastructure stock, in my opinion, AMD is a solid pick as well.