The Late-Session Surge
Advanced Micro Devices (AMD) surged 9.6% in late trading Tuesday, pushing its share price near $215. The move was accompanied by exceptionally heavy volume of over 67 million shares, signaling strong institutional or algorithmic interest.
This rally stands in stark contrast to the stock's recent performance. AMD had declined in four of the prior six sessions, including a nearly 1% drop just yesterday. Today's sharp reversal suggests a significant shift in sentiment.
Catalyst: A Multi-Billion Dollar AI Deal
The primary driver appears to be a major new business announcement. AMD secured a deal to supply Meta with data center hardware supporting 6 gigawatts of AI computing power over five years, starting in the second half of 2026.
The deal, valued in the double-digit billions, includes warrants for Meta to purchase 160 million AMD shares tied to performance milestones. This represents a substantial, long-term revenue stream and a major endorsement of AMD's AI chip technology from a leading hyperscaler.
Sector Context and Peer Performance
AMD's jump powered the broader semiconductor sector, which led all groups with a 3.9% gain. However, performance among individual chip stocks was mixed, indicating the move was not a blanket sector rally.
While AMD soared, rival Broadcom Inc. (AVGO) fell 1.7%. Other major tech names like Oracle (ORCL) and Adobe (ADBE) posted solid gains of over 3%, suggesting positive momentum was concentrated in specific software and hardware names tied to enterprise and AI spending.
- Semiconductor Sector: +3.9%
- Broadcom (AVGO): -1.7%
- Oracle (ORCL): +4.3%
Broader Market Momentum and Watchpoints
The overall market showed strong positive breadth. Gainers outnumbered decliners by more than three to one, with 22 stocks advancing and only 7 falling. The average stock moved up about 1.06%.
This marks a sharp reversal from Monday's session, where decliners led and the average stock fell nearly 1%. The question for Wednesday is whether this positive momentum can hold, especially for leaders like AMD.
- Market Breadth: 22 Gainers vs. 7 Decliners
- Average Stock Move: +1.06%
- Previous Session (2/23): Average Move -1.0%
What Comes Next
Traders will watch to see if AMD can hold its gains into the close and whether follow-through buying emerges on Wednesday. Sustained volume will be key to confirming the move's strength beyond a one-day headline reaction.
Investors should also monitor peer reaction in the chip sector. A broadening of gains beyond AMD would signal stronger sector-wide conviction. Conversely, if AMD pulls back sharply tomorrow, it may indicate the news was already priced in during today's aggressive move.
- Watch for holding above $215.
- Monitor semiconductor sector (XLK, SOXX) for confirmation.
- Observe volume levels in Wednesday's session.