Why Is AMD Stock Rising In Premarket Today?

• AMD shares gained by over 1% amid a broader premarket rally in chip stocks.
• Samsung will supply high-bandwidth memory for AMD next-gen AI data center chips.
• Retail sentiment on Stocktwits for AMD remained ‘bearish.’

Advanced Micro Devices shares gained by 1.3% in early premarket trading on Wednesday after the company announced a supply agreement for high-demand high-bandwidth memory to support its next-generation MI400 series AI chips.

Key Memory Supply Secured

Samsung will supply HBM4 as the primary supplier for AMD’s MI455X accelerators used in corporate data centers, the companies said in a joint statement Wednesday. 

The Korean major will also supply DDR5 memory chips for AMD’s Helios system based on the MI455X and the new Venice central processing unit design. AMD Chief Executive Officer Lisa Su and Samsung co-CEO Jun Young-hyun reportedly signed the agreement in Seoul on Wednesday.

As part of the agreement, the two sides also agreed to discuss a foundry partnership. Shares in Samsung extended their gains in Seoul, climbing as much as 7.8% ahead of the announcement.

Chips, Broader Market Rebounds In Premarket

In the U.S., stock futures rose as investors counted down to the Fed's meeting. Chip stocks rose, led by memory chip producers Micron, SanDisk, Seagate, and Western Digital. Nvidia stock was up 1%.

Micron is scheduled to publish its fiscal second quarter earnings after the markets close, with analysts expecting a blowout report. 

On Stocktwits, retail sentiment for AMD remained ‘bearish,’ as traders debated whether the momentum could sustain a breakout above key technical levels. AMD shares fell below $200 last week, a level they have largely stayed above for five months prior.

Year to date, AMD stock is down 8.3%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Micron Stock Jumps Ahead Of Q2 Earnings — Lifts SanDisk, WDC, Seagate Too: Retail Gets More Bullish

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