AMD’s stock price fell on Thursday, ending a six-day winning streak driven by optimism over its recent AI-related deals and stock buyback plans. The chipmaker’s shares dropped nearly 2% to just below $115, after reaching their highest level since early February the day before.
The decline followed AMD’s announcement of an additional $6 billion stock repurchase authorization, bringing the total buyback capacity to $10 billion. This move, along with positive momentum in the artificial intelligence sector, had fueled significant gains, pushing the stock up 50% from its April lows and 17% since May 6. On that date, the company reported better-than-expected earnings and expressed confidence in its future prospects.
Technically, AMD’s price had broken through its 50-day moving average and a descending channel last month, accelerating upward momentum in recent sessions. However, the Relative Strength Index (RSI) climbed above 70, indicating an overbought condition that often signals a possible consolidation or pullback.
Analysts identify $110 as the first key support level, corresponding with trading activity and a swing high from October 2023. A further drop could test stronger support near $96, a price point linked to multiple troughs dating back to September 2023.
On the upside, sustained bullish momentum could push AMD shares toward $132. This level lies just above the 200-day moving average and coincides with prior swing points from August and January, potentially creating resistance. Breaking above $132 may open the way for a rally to $150, a zone where investors who bought at lower prices might look to take profits. This level aligns with a trendline connecting several peaks and troughs from late 2023.
Investors are advised to watch these key price levels closely as AMD’s stock navigates the balance between strong fundamentals and technical signals pointing to short-term caution.
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