AMD Stock Fueled By Optimism About AI Opportunity—Important Technical Levels to Monitor
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Key Takeaways
AMD gained over 8% Tuesday to close at its highest level since late 2021 amid growing optimism about
AI
-fueled demand for its semiconductors.
Barclays analyst Tom O’Malley says the company could generate $4 billion in AI chip sales this year, while KeyBanc analysts also see growth from chips powering AI servers.
AMD’s share price closed above a flag pattern, suggesting further bullish momentum.
Here is a look at a chart tied to AMD’s recent
news-driven
price move, with important technical levels to monitor.
Advanced Micro Devices, Inc.
Source: TradingView.com.
Chipmaker Advanced Micro Devices (
AMD
) gained over 8% Tuesday to close at its highest level since late 2021 amid growing optimism about
AI
-fueled demand for its semiconductors. Barclays analyst Tom O’Malley says the company could generate $4 billion in AI chip sales this year, while KeyBanc analysts also see growth from chips powering AI servers. In the fourth quarter, the company announced a new AI server chip similar to Nividia’s (
NVDA
) that OpenAI use to train and run
ChatGPT
.
Magnificent Seven
members Meta (
META
) and Microsoft (
MSFT
) said in December that they plan to use
AMD’s chips
for AI inference workloads and running cloud computing platforms. Barclays has placed a $200
price target
on the stock, implying 26% upside from Tuesday’s close of $158.74.
AMD broke above the June 2023
swing high
last month before staging a successful retest of the breakout level in recent weeks. Tuesday’s price action saw the stock close above a
flag
pattern, suggesting a continuation of the bullish momentum. However, investors should keep a close on the $164.5 level—an area on the chart that may encounter
resistance
from the stock’s all-time high.
