AMD Stock Soars After Crushing Earnings: Is This the Start of a Comeback?
AMD Stock Soars After Crushing Earnings: Is This the Start of a Comeback?
AMD shares skyrocketed over 9% in pre-market trading Wednesday, fueled by a stunning second-quarter earnings report that exceeded expectations. The surge follows a significant downturn – a 35% drop from its March high – sparked by concerns over its AI market share and broader chip sector anxieties.
The company’s robust data center segment, driven by booming AI demand, was the key driver of this positive surprise. This impressive performance, coupled with an optimistic outlook for the second half of the year, has reignited investor confidence.
Technically, the stock had been trading within a descending channel, a bearish pattern. While the recent sell-off pushed the price below both the 50- and 200-day moving averages, trading volume remained relatively low, and the RSI neared oversold territory – suggesting a potential bounce was on the horizon.
If this rally continues, key resistance levels to watch include approximately $151 (a short-term profit-taking level near a trendline and the rising 200-day moving average), $170 (near previous consolidation areas), and $187 (near the July swing high and the descending channel’s upper trendline).
Looking further ahead, a bar pattern analysis, projecting AMD’s October-March trend from Tuesday’s low, suggests a potential target of around $305. However, this is a longer-term projection and subject to market fluctuations.
As of pre-market trading, AMD shares were up 8.9% at $150.81. This dramatic turnaround leaves investors wondering: is this the start of a significant comeback for AMD?
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