Advanced Micro Devices Inc: Will AMD Stock Hit $100 Mark?

• AMD stock has been witnessing a long march of bears since mid-June 2023.
• The year-to-date return of AMD stock is +62.49%, and the three-month return is -6.06%. 
• AMD stock closed at $107.24, gaining 4.21% in the past trading session.

Advanced Micro Devices (NASDAQ: AMD) stock has been declining since mid-June 2023. The long march of bears resulted in a negative 3-month return of -6.06%. Currently, AMD stock has gained an upward momentum and is on the path of recovery. The stock has partially recovered roughly 15% in September from its previous fall. 

AMD stock is currently trading above the 200-day EMA and is challenging the 20-day and 50-day EMAs. This suggests that the stock is experiencing upward momentum and may be in a position to make a bullish move. Advanced Micro Devices has attracted more buyers in the past few weeks. If the next candle closes above the current candle’s high, then there is a high possibility that the price might reject the short-term exponential moving average.  

However, the recent military conflict in the Middle East shows that prices might decline. Moreover, the conflict has already affected chip and semiconductor makers like Intel, Nvidia, and Qualcomm, whose stock prices are down between 0.8% and 2.3%. Furthermore, U.S.-listed Israeli chipmaker Tower Semiconductor was down 4.9% at $23.3. 

AMD stock closed at $107.24 while witnessing a gain of 4.21% in the past intraday session. Moreover, its market capitalization is $173.26 Billion, and the current average volume is 52.68 Million shares. The company will announce its third quarterly report on October 31, 2023.

AMD Scheduled to Announce Its Q3-2023 Consensus 

Market participants are excited about the Q3-2023 consensus of Advanced Micro Devices Inc. AMD will release its third quarterly report on October 31, 2023. According to Zacks Investment Research, the estimated EPS is $0.67. The Q3-2022 reported EPS was also $0.67. 

Moreover, AMD’s Q3-2023 estimated revenue is $5.69 Billion, which is $40 Million higher than the reported revenue of $5.65 Billion in the previous year’s third quarter. 

Will AMD Stock Retest The $111 Mark?

The overall performance of AMD stock shows an increase of 62.49% in the year-to-date return. Hence, 2023 has been a bearish year for the chipmaker AMD. The three-month return displays a negative result of -6.06%, signifying that bearish sentiment has significantly influenced the AMD stock price. This bearish trend is also evident in the technical parameters of AMD stock.

The RSI has just escaped the 50-neutral zone and is now trading at the 56.88 mark. This indicates slight strength as the price is facing a correction phase. Meanwhile, the CMF has been hovering below the 0.00 mark since September 18, 2023, and is at -0.03, which denotes slight weakness as the price trades near the neutral zone.

However, if the bullish trend remains constant, the price might retest the previous resistance level of $111.80. On the contrary, if bears take control and push the price below, the price might retest the recent support level of $94.40. 

Conclusion 

The market structure and price action of Advanced Micro Devices (AMD) stock expresses the trend reversal from the prior pullback. Hence, the stock price is attempting to break out from the falling pattern. Investors should look for buying opportunities as the technical and analyst ratings suggest the same.

Technical Levels

Major resistance: $130.79 and $132.83
Major support: $67.27 and $60.05

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing or trading comes with a risk of financial loss.