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Here's Why Advanced Micro Devices (AMD) Stock Gained Today

Shares of Advanced Micro Devices AMD were up nearly 7% through early afternoon trading Wednesday after a new report pointed to positive market conditions throughout the semiconductor industry.

According to the Semiconductor Industry Association, global chip sales in May gained nearly 23% year-over-year to $31.9 million—the biggest jump since September 2010. The report, which was published late Monday, also indicated that all major regional markets saw growth of at least 15%. The Americas notched the highest regional growth with a 30.5% increase in sales.  

Today’s gains look likely to snap AMD’s seven-session losing streak, its longest downturn since January 2016. The stock also benefitted from a report which seemed to indicate that AMD was gaining ground on one of its key competitors, Intel (INTC).

PC benchmarking site PassMark reported that tests involving AMD central processing units accounted for almost 26% of all x86-compatible tests submitted in the most recent quarter. These results were up from 21% in the prior quarter and 18% in the prior-year quarter, indicating that AMD’s Ryzen chips could be helping the company snag some market share from Intel.

AMD’s recent slump saw the trendy stock lose nearly 15% of its value, but shares of the popular chipmaker look primed to recover thanks to today’s news. Despite its recent volatility, AMD shares have soared more than 145% over the past year.

This remarkable climb has placed AMD directly in the spotlight, and it has helped the stock earn an “A” grade for Momentum in our Style Scores system. AMD is also currently sporting a Zacks Rank #2 (Buy).

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