Core Viewpoint - Advanced Micro Devices (AMD) stock has experienced significant gains amid a broader market rally, driven by easing trade tensions and positive analyst coverage [1][2][3]. Market Performance - AMD stock rose 4.5% on a day when the S&P 500 increased by 2% and the Nasdaq Composite by 2.7% [1]. - The broader market has rebounded this week following earlier sell-offs related to trade war concerns, with optimism surrounding potential trade deals with major partners like China [3]. Trade Relations - Reports indicate that the U.S. is making efforts to reduce trade war tensions, which has positively impacted investor sentiment towards AMD [2]. - There are suggestions of a forthcoming bilateral trade agreement between the U.S. and India, which could enhance the U.S.'s manufacturing position and reduce reliance on China [4]. Analyst Coverage - Susquehanna has updated its price target for AMD, lowering it from $150 to $135 per share while maintaining a positive rating, indicating a potential upside of approximately 43% over the next year [5]. - Despite recent adjustments in price targets due to market pressures, some analysts still see significant upside for AMD relative to its current valuation [6]. Business Outlook - AMD faces challenges such as restrictions on its MI308 processor sales to China and broader macroeconomic pressures, which may impact its performance outlook [6]. - However, there is potential for the stock to be undervalued if AMD can achieve significant success in the AI processor market [6].

US stocks have fallen further after Donald Trump imposed a new trade restriction on the chip designer Nvidia, rattling investors and triggering a sell-off across the semiconductor industry.The S&P 500 index dropped by about 1.3% in early trading, with the tech-heavy Nasdaq index down 2.1%. The Dow Jones fell 0.6%.Nvidia, the Californian company at the heart of the revolution in artificial intelligence technology, lost billions of dollars from its market value at the opening bell, with its shares down about ...