AMD: A Deep Dive into the Chart & The Story Behind the Sell-Off

AMD Hits 52-Week Lows: Oversold Opportunity or More Pain Ahead?

Hey traders and investors,

This week I’m putting $AMD under the microscope. The stock just hit a 52-week low, and if you’re wondering why, it’s not because of bad earnings—it’s all about expectations and a miss in Data Center revenue.

Let’s break it down in a straightforward way:

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📉 The Chart Says It All: AMD's Downtrend

Looking at the chart, it’s not pretty. AMD is stuck in a bearish trend across both the 1-month and 6-month timeframes, making lower highs and lower lows—classic downtrend behavior.

• AMD is trading at $107.56, which is just barely holding onto its weak support level at $106.50.

• Resistance levels are sitting far above at $119.50 and $127.50, meaning AMD has an uphill battle to recover.

• The Relative Strength (RS) is a brutal 1/10, meaning it's among the weakest stocks in the market right now.

🔍 What’s Causing the Pain?

Let’s talk about why AMD is down 10% and hitting fresh lows despite beating on earnings and revenue.

The issue? Data Center revenue didn’t meet Wall Street’s sky-high expectations.

Yes, 69% year-over-year growth is still impressive, but the market was expecting even more. Compared to 122% growth in the previous quarter, this slowdown made investors nervous. The AI boom isn’t stopping, but AMD’s growth didn’t keep up with NVIDIA (NVDA), which is still stealing the spotlight.

Investors were banking on Data Center being the bright spot, especially since AMD’s Gaming and Embedded segments are struggling (down 59% and 13% year-over-year, respectively).

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💾 AI & Market Share: The Silver Lining

Now, here’s where it gets interesting.

AMD isn’t just sitting back—it’s taking market share from Intel (INTC) in both the server space and consumer chips.

• Intel’s Data Center and AI division shrank by 3% last quarter.

• Intel’s Client business (PC chips) dropped 9% while AMD’s client segment surged 58%.

So even though Wall Street threw a tantrum over the Q4 results, AMD’s long-term positioning in AI is strong:
✅ Meta (META) is exclusively using AMD’s MI300X chips for its Llama 405B AI model.
✅ Next-gen MI325X and MI350 series chips are ramping up production.
✅ AI-related revenue is still projected to double in 2025 according to Taiwan Semi (TSM), which makes AMD’s chips.

This tells us that while short-term pain is real, AMD is still a major AI player in the long run.

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🛠️ Trade Setup: Where’s the Opportunity?

Now, let’s talk about trade setups based on the chart and fundamentals.

✅ Bullish Trade (If You Think AMD Will Rebound)

If you believe this sell-off is overdone and AMD is due for a bounce, here’s what you’d look for:

• AMD needs to hold support at $106.50—if buyers step in, this could be a nice entry.

• A move back above $110 would signal some strength.

• Target: $119.50 (first resistance level)

• Stop-loss: Below $105 (if support fails, it could drop further).

⏳ Waiting for a bullish signal is key—you don’t want to catch a falling knife!

🚨 Bearish Trade (If You Think AMD Drops More)

If you think the trend is your friend, AMD could have more downside if it breaks below $106.50.

• Ideal short entry: Below $106.50, especially on high volume.

• Target: $100 (psychological level)

• Stop-loss: Above $110 (in case of a rebound).

The bearish case makes sense as long as AMD stays in a confirmed downtrend.

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📢 Final Thoughts: Is AMD a Buy Right Now?

Not so fast.

💡 Right now, AMD is in the penalty box—the stock is weak, momentum is down, and Wall Street is punishing it for the Data Center miss. But at the same time, AMD’s AI future is still bright, and they’re stealing market share from Intel.

👉 If you’re a long-term investor, this dip could be a buying opportunity, but waiting for signs of strength (like a break above $110) would be smarter.
👉 If you’re a trader, the trend is still bearish, and a break below $106.50 could lead to more downside.

AMD has work to do before it wins back traders’ confidence, but don’t count them out just yet. Until next time trade smart everyone! -EC 🎯

What do you think? Is AMD a buy-the-dip or a short-the-weakness trade for you? Drop your thoughts! 🚀

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*Disclaimer The examples in The Options Oracle are my opinion, not financial advice.

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