AMD stock extends gains

What happened: Advanced Micro Devices (AMD) shares surged to new record highs on April 20, initially dipping after reporting strong Q1 results (EPS $1.37 vs. $1.29 expected, Revenue $10.25B vs. $9.89B expected) but subsequently rallying on bullish analyst remarks. Barclays analyst Blayne Curtis rated AMD as 'overweight', while Bernstein raised its price target. AMD's stock price rose over 9% on April 20, extending gains to a fourth consecutive day and hitting a new all-time high on April 24.

Market impact: The semiconductor sector, particularly AMD's peers like Nvidia, experienced positive spillover from AMD's strong performance. AMD's gains reflect investors' optimism about its growth potential in AI chips and data centers, driving up valuations in the sector. AMD's stock is now among the 'Stocks That Will Double in the Next 5 Years' according to Wall Street analysts.

What to watch next: AMD's Q2 2023 earnings report, scheduled for May 3, will provide insights into its growth trajectory. Additionally, investors should monitor regulatory developments around AMD's acquisition of Xilinx, with a closing date expected in late 2023 or early 2024. Lastly, AMD's stock price action around the $100 level will indicate if it maintains its overbought momentum or experiences a pullback.