Is Advanced Micro Devices Stock Outperforming the S&P 500?

Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) is a semiconductor company internationally that offers artificial intelligence (AI) accelerators, microprocessors, graphics processing units (GPUs), chipsets, and data center and professional GPUs, and more. Valued at a market capitalization of $326.3 billion, the company operates through data center; client and gaming; and embedded segments.

Companies with a market capitalization of $200 billion or more are typically referred to as “mega-cap stocks.” Advanced Micro Devices fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the semiconductor industry. 

The stock touched its 52-week high of $267.08 on Oct. 29, 2025, and is currently trading 19% below that peak. AMD stock has slipped marginally over the past three months, significantly lagging behind the S&P 500 Index’s ($SPX) 3.6% surge during the same time frame.

However, the chip stock has outperformed the broader market over the longer term. The stock has surged 99.5% over the past 52 weeks, while SPX delivered 13.7% returns over the same time frame.

AMD has maintained its long-term uptrend by trading above its 200-day moving average since last year, but in the near term, it has slipped below its 50-day moving average since February, signaling softer short-term momentum within a broader bullish structure.

On Feb. 3, AMD shares dropped 1.7% following the release of its Q4 2025 earnings. The company’s revenue increased 34.1% year over year (YoY) to $10.3 billion and surpassed analysts’ estimates. Additionally, AMD’s adjusted EPS for the quarter amounted to $1.53, also beating projections. However, despite better-than-expected results, AMD’s decline was ultimately driven by disappointment with its Q1 2026 guidance, as analysts had expected stronger guidance amid the ongoing AI boom.

In contrast, AMD recently gained momentum after the chipmaker secured a long-term partnership with Meta Platforms (META), reinforcing confidence in its AI positioning. Over the past year, the stock’s broader rally has largely been fueled by sustained investor enthusiasm around the AI boom that began in late 2022.

Its peer, Micron Technology, Inc. (MU), has outperformed the stock over the past year, with its shares rising 343.6% over the past 52 weeks and 89% over the past three months.

Among the 46 analysts covering the AMD stock, the consensus rating is a “Moderate Buy.” Its mean price target of $286.90 suggests a robust 36% upside potential from current price levels.