AMD Stock Fueled By Optimism About AI Opportunity—Important Technical Levels to Monitor

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.

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.