Advanced Micro Devices, Inc. (NASDAQ:AMD) has seen notable activity this week, with shares trading higher on Friday afternoon following earlier jobs data.

What's Going On: The week began with AMD and other chip stocks experiencing declines amidst a broader semiconductor sector sell-off, prompted by concerns over valuation despite strong AI-driven momentum in the first half of 2024.

AMD's Price to Earnings (P/E) ratio of 235.09 may have raised initial investor caution,

Despite these early setbacks, AMD shares rebounded significantly on Tuesday, surging over 4%. This uptick coincided with broader gains in the Nasdaq 100 Index, buoyed by Fed Chair Jerome Powell's remarks suggesting a possible resumption of the disinflation trend and appropriate cooling in the labor market.

What Else: Moreover, AMD continues to innovate in AI technologies, enhancing its AMD ROCm 6 open-source software platform to align with advancements in AI frameworks. Recent updates, such as improved GPU performance for deep-learning applications, underscore AMD's competitive edge in the semiconductor industry.

AMD shares are trending across social platforms such as YahooFinance and Stocktwits, with the stock's current trading above its 50-day moving average of $158.79.

AMD Price Action: Advanced Micro Devices shares were up by 4.96% at $172.03 at the time of writing, according to Benzinga Pro.

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