Monday Movers: AMD Stock is Big in Japan; Plus, Why AFRM is Crashing

The stock market is showing a mixed but generally positive bias to start the week this Monday, with 3,847 advancing stocks compared to 1,357 declining issues. Technology stocks are leading the action, with NVIDIA (NVDA) the most actively traded stock amid GTC buzz, though it's down 0.92%, while quantum computing stocks are showing remarkable strength with D-Wave Quantum (QBTS) and Quantum Computing Inc (QUBT) both posting double-digit percentage gains. 

The market's technical picture is improving, with the percentage of stocks trading above their 20-day moving average jumping to 35.64% today from 26.18% in the prior session, suggesting a broader market recovery is underway. Notable sector rotation is evident as traditional automakers like Ford (F) and semiconductor companies like Intel (INTC) are seeing significant buying interest. 

Overall market breadth is notably strong with nearly three times as many stocks advancing as declining, indicating healthy participation across the market - despite some weakness in market leaders like Tesla (TSLA), which is down 4.34% after more negative news. Here’s a look at a few more of today’s top stock movers.

#1. Netflix (NFLX), up +5.21% at $965.80

Netflix (NFLX) stock is trading notably higher after a positive analyst report from MoffettNathanson. The investment firm hiked its price target for NFLX to $1,100 from $850, citing the company's successful dual-revenue model that combines subscription fees with advertising income, which is projected to generate up to $6 billion in ad revenue by 2027. 

Analyst Robert Fishman is particularly enthusiastic about Netflix's superior monetization potential, as its current revenue per hour viewed is only 40 cents, suggesting significant room for future price increases without risking customer churn. The streaming giant’s operating margins are expected to expand by at least 200 basis points annually, potentially reaching an impressive 40% by 2030, demonstrating the scalability of Netflix's business model. 

Additionally, investors are responding positively to Netflix's strategic evolution into a more mature, financially disciplined organization that focuses on profitability metrics over subscriber numbers, positioning the company for sustained long-term growth.

#2. Advanced Micro Devices (AMD), up +4.68% at $105.70

Chip stock Advanced Micro Devices (AMD) is showing significant strength today, primarily driven by positive developments in the Japanese gaming GPU market, where the company has captured an impressive 45% market share and is targeting an ambitious 70%. AMD's RX 9070 series gaming GPUs are experiencing robust demand, which has led to production constraints and price increases from manufacturers like Asus. 

Despite being down 12.4% year-to-date, today's rally reflects growing investor confidence in AMD's diversified business strategy and its potential for over 20% revenue growth in 2025 - particularly in the data center segment, where McKinsey projects 19-22% annual growth through 2030. AMD stock's current valuation at 22.5 times expected 2025 earnings appears relatively modest given these growth prospects, suggesting room for further appreciation. 

While AMD has faced some challenges in gaining AI market share compared to competitors like behemoth NVDA, today's rally indicates that investors are becoming more optimistic about the company's ability to capitalize on both gaming and AI opportunities.

#3. Affirm (AFRM), down -6.11% at $47.02

Affirm (AFRM) stock is trading sharply lower today, due to the major announcement that Walmart (WMT) has ended its partnership with Affirm in favor of Swedish competitor Klarna. The loss of Walmart as a partner is particularly concerning for AFRM investors since it represented approximately 5% of Affirm's gross merchandise volume (GMV) and 2% of adjusted operating income. 

The timing of this setback for Affirm coincides with Klarna's preparation for a U.S. IPO, where the Swedish company is demonstrating improved financial health with a recent profit of $21 million. The partnership between Walmart and Klarna will be implemented through OnePay, Walmart's consumer finance app, offering loan terms ranging from 3 to 36 months.

The market's negative reaction reflects concerns about Affirm's competitive position in the buy-now-pay-later segment, though it's worth noting that Affirm remains profitable with $80 million in recent GAAP net income.