Why Advanced Micro Devices Stock is Gaining Today

By Chris Neiger – Mar 25, 2026 at 11:17AM ESTKey PointsShares of AMD rose as investors hoped that the U.S. and Iran were getting closer to a ceasefire.Potential AI chip sales from a fellow semiconductor company may be contributing to today's share price gains, too.Shares of the semiconductor company Advanced Micro Devices (AMD +6.05%) climbed this morning as tech investors grew more optimistic that a potential ceasefire or slowdown in the war in Iran was around the corner. AMD's stock could also be responding to some recent news from Arm Holdings' that its AI chip could generate significant sales over the next few years. The sentiment that rising tides lift all boats may be playing out here as investors take any sign of one semiconductor company doing well and apply it to others. AMD's shares were up by 6.5% as of 11:15 a.m. ET. Image source: Getty Images. Signs of life from semiconductor stocks Many tech stocks, and semiconductor companies in particular, have been on the decline lately as investors have become more risk-averse amid the war in Iran and other economic concerns. Rapidly rising oil prices as a result of the war have sparked fears of an economic slowdown, and even caused some economists to raise their predictions for the likelihood of a recession in the next 12 months. But there have been some reports lately that President Trump may be working toward a ceasefire with Iran, leading to more market optimism. The war doesn't have anything to do with AMD specifically, but investors are concerned prolonged fighting will slow the U.S. and global economies. Adding to today's optimism is that fellow semiconductor company Arm Holdings said its new artificial intelligence processor could generate $15 billion in sales by 2031. The positive outlook for Arm's new AI chip encouraged AMD's investors that more growth in the AI market is still ahead. ExpandNASDAQ: AMDAdvanced Micro DevicesToday's Change(6.05%) $12.42Current Price$217.79Key Data PointsMarket Cap$335BDay's Range$211.46 - $219.9552wk Range$76.48 - $267.08Volume1.1MAvg Vol37MGross Margin45.99% Nothing is set in stone There's no definitive ceasefire agreement between the U.S. and Iran right now, and some of the latest reports even say that Iran isn't interested in accepting one. All of which means that jumping on any one stock right now, including AMD's, based on initial rumors, isn't a good idea. Instead, investors should be focused on AMD's long-term prospects in the artificial intelligence market and the potential for the company to benefit from surging AI data center spending in the coming years. Read NextMar 25, 2026 •By Geoffrey Seiler1 Tech Stock I'm Adding to My Portfolio While Everyone Is PanickingMar 23, 2026 •By Matt Frankel, CFPPrediction: This Unstoppable Growth Stock Will Be Worth $2 Trillion in the Next 7 YearsMar 21, 2026 •By Geoffrey SeilerI Just Put More Than $10,000 Into These 3 Tech Stocks. Here's Why.Mar 17, 2026 •By Matt Frankel, CFPWhy AMD Is the Most Underrated AI Stock Right NowMar 16, 2026 •By David Jagielski, CPAShould You Buy AMD Stock Now or Wait for a Dip?Mar 16, 2026 •By Manali Pradhan, CFAAdvanced Micro Devices Has Sold Off. Here's Why the Bull Case Isn't Broken.About the AuthorChris Neiger has been a contributing Motley Fool technology and automotive analyst since 2012.

Before The Motley Fool, Chris was an automotive journalist for the BBC. He holds a master’s degree in journalism from Regent University and a bachelor’s degree from the University of Delaware.TMFNewsieStocks MentionedAdvanced Micro DevicesNASDAQ: AMD$217.79(+6.05%)+$12.42Arm HoldingsNASDAQ: ARM$163.10(+20.85%)+$28.14*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.