Advanced Micro Devices Inc. (NASDAQ:AMD) stock rose nearly 4% in Friday’s premarket session as investors returned to semiconductor stocks ahead of next week’s earnings. Nasdaq futures gained 0.82%, while S&P 500 futures rose 0.17%.

According to CNBC, chip stocks rallied Thursday after strong quarterly results from Microsoft Corporation (NASDAQ:MSFT) and Lam Research Corporation (NASDAQ:LRCX) sparked broad buying across the sector, lifting several beaten-down semiconductor names.

Earnings In Focus

Advanced Micro Devices is scheduled to report second-quarter results on Aug. 4. With earnings just days away, traders are positioning for what could be a volatile move following the 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.

Technical Analysis

AMD remains in a strong long-term uptrend, with the stock up 175.3% over the past 12 months.

The shares trade 26.3% above their 100-day simple moving average of $397.37 and 61.7% above their 200-day simple moving average of $310.52, signaling a positive long-term trend.

However, the stock is consolidating in the short term. It sits 2.9% below its 20-day simple moving average of $517.14 and 1.8% below its 50-day simple moving average of $510.97.

The relative strength index stands at 46.72, indicating neutral momentum with room for the stock to move in either direction.

Key technical levels include resistance at $546.50 and support at $498.00.

Analyst Outlook

AMD trades at a price-to-earnings ratio of 161.8, reflecting high expectations for future growth. The stock carries a Buy consensus rating with an average analyst price forecast of $581.86. Recent analyst actions include:

• Susquehanna maintained a Positive rating and raised its price forecast to $500 on July 30.
• Mizuho reiterated Outperform and increased its price forecast to $625 on July 27.
• Wedbush maintained Outperform and lifted its price forecast to $600 on July 27.

Benzinga Edge Rankings

Benzinga Edge scores AMD highly for Momentum (98.02), Growth (97.04) and Quality (92.94), while assigning a low Value score of 3.71 because of its premium valuation.

That combination suggests investors continue to reward AMD’s AI-driven growth story. However, the elevated valuation could leave little room for disappointment when earnings are released.

ETF Exposure

AMD is a major holding in several semiconductor-focused exchange-traded funds, including the iShares Semiconductor ETF (NASDAQ:SOXX) with an 8.47% weighting, the ARK Next Generation Internet ETF (NYSE:ARKW) at 8.31%, and the Pacer Data and Digital Revolution ETF (NYSE:TRFK) at 8.22%.

Price Action

AMD Price Action: Advanced Micro Devices shares were up 3.56% at $502.67 during premarket trading on Friday, according to Benzinga Pro data.

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