AMD's Latest Acquisition Tackles One Of AI's Biggest Bottlenecks

Advanced Micro Devices Inc. (NASDAQ:AMD) stock edged higher in Tuesday’s premarket trading, extending the previous session’s gains after the chipmaker announced its acquisition of memory optimization technology company MEXT.

The stock remained near record highs after rallying 6.98% on Monday. U.S. stock index futures were mixed ahead of the opening bell. Nasdaq futures were little changed, and S&P 500 futures edged slightly lower.

AMD Acquires MEXT

Advanced Micro Devices announced Monday that it has acquired MEXT, a developer of AI-driven memory optimization technology, to strengthen its data center and AI portfolio. Financial terms of the acquisition were not disclosed.

The deal comes as memory has become a key bottleneck in modern data centers, where increasingly complex AI and high-performance computing workloads require faster and more efficient access to memory.

Specifically, AMD said MEXT’s predictive memory technology is designed to make flash storage behave more like DRAM, helping expand usable memory capacity while maintaining performance.

As a result, the company expects the technology to improve infrastructure efficiency, lower the total cost of ownership and accelerate AI deployments. Additionally, AMD said MEXT’s engineering team will strengthen its expertise in memory systems and AI infrastructure.

Technical Analysis

AMD remains in a strong long-term uptrend. The stock has surged 332.99% over the past year and trades 12.4% above its 20-day simple moving average and 114.4% above its 200-day moving average.

However, momentum has softened. The MACD remains below its signal line, while the histogram is negative. That suggests buying pressure has eased and the stock may need a fresh catalyst to extend its rally.

The broader trend remains constructive. The 20-day moving average is above the 50-day moving average, and the bullish golden cross formed in July 2025 remains intact. AMD is also trading near its 52-week high, where profit-taking could create resistance.

Key resistance stands at $558.37, near the 52-week high. Initial support sits at $488.13, which aligns with the 20-day moving average.

Earnings And Analyst Outlook

The next major catalyst is AMD’s estimated Aug. 4, 2026, earnings report. Wall Street expects earnings of $1.55 per share, up from 48 cents a year earlier, on revenue of $11.28 billion, compared with $7.68 billion last year.

AMD trades at 182.4 times earnings, reflecting a premium valuation. The stock carries a consensus Buy rating with an average price forecast of $490.07. Recent analyst actions include:

• Citigroup upgraded the stock to Buy and raised its price forecast to $575 on June 12.
• Bank of America Securities maintained Buy and lifted its price forecast to $560 on June 11.
• Barclays maintained Overweight and increased its price forecast to $665 on June 1.

AMD Price Action

AMD Stock Price Activity: Advanced Micro Devices shares were trading up 0.32% at $548.99 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock