Advanced Micro Devices, Inc. (AMD) experienced a significant surge in its shares on Tuesday, closing the day with a gain of over 4%. This rise contributed to the Nasdaq 100 Index reaching a new daily closing high of 20,011 points. The positive performance of both AMD and Tesla, Inc. (TSLA) played a crucial role in boosting investor confidence in future rate cuts.
Federal Reserve Chair Jerome Powell’s comments during a European Central Bank monetary policy panel further bolstered investors’ optimism. Powell indicated that the disinflation trend has resumed and that the labor market is displaying signs of “appropriate cooling.”
Over the past year, AMD shares have seen a remarkable increase of more than 40%, benefiting from the widespread adoption of artificial intelligence (AI) across various industries. The company recently unveiled an updated version of its open-source software platform, AMD ROCm 6.1, to keep up with the rapid advancements in AI frameworks. Notable updates include a new ROCm library that facilitates high-performance video decoding directly on AMD’s GPUs, as well as enhancements to the MIOpen Library aimed at improving GPU performance for deep-learning applications.
On Tuesday, AMD shares experienced a steady climb on above-average volume, ultimately closing the session above its 50-day moving average of $158.79, according to data from Benzinga Pro.