Advanced Micro Devices, Inc (AMD) stock prices are surging today. The rally follows a deal announcement that AMD will expand its services on Microsoft Azure. AMD stock closed 1.58% (7.81 points) higher on July 20, and has gained 3.56% (17.93 points) in the pre-market hours. Let’s discuss what the new partnership will include and if the rally can continue.

AMD Stock Price Surges After Microsoft Deal

According to the official announcement, AMD will expand its GPU, CPU, networking, and software services for Microsoft. In particular, Microsoft will deploy the AMD Helios Rackscale Solution. The release also highlights that “Azure will also add two new AMD EPYC CPU-powered VM series and broaden its deployment of Pensando DPUs to support Azure networking services.“

According to AMD CEO Dr. Lisa Su, “AMD and Microsoft have spent years building high-performance infrastructure together, and today we’re extending that partnership across the full stack of AMD AI solutions on Azure“

Microsoft CEO Satya Nadella stated, “Through our collaboration with AMD, we are expanding the Azure infrastructure portfolio with AMD Helios to give customers the performance, scale and choice they need to build and run the next generation of AI applications.“

Will The Rally Continue?

AMD’s stock price is expected to surge ahead of its quarterly earnings report, due on August 4, 2026. Experts anticipate the company to report high revenue and earnings per share (EPS), mimicking its Q1 results.

Also Read: AMD Stock Price Rises In Pre-Market After Anthropic Rumors

AMD has been one of the biggest beneficiaries of the AI boom. The pattern is expected to continue in the coming years. AI spending is projected to significantly increase and stock prices of AI-based companies are expected to rise. However, the ongoing conflict between the US and Iran may present challenges. Oil prices are rising and we may see some supply chain issues. Such a development may hurt AMD’s stock price.