Santa Clara, CA, USA. February 18, 2021. Editorial Use Only, 3D CGI. AMD Signage Logo on Top of Glass Building. Workplace Multinational Semiconductor Company Office Headquarter.
AMD (NASDAQ: AMD) has been a hot topic recently, with the stock taking a dip amidst general market volatility. As of today, AMD is trading at $144.07, down 3.05%, sparking questions about whether now’s the time to buy the dip or avoid further downside. With new AI partnerships on the table, let’s dive into what’s driving AMD’s performance this month.
AMD has recently formed multiple prominent AI partnerships in order to strengthen its presence in the AI computing industry, directly challenging NVIDIA. These partnerships aim to increase AMD’s presence in AI applications in cloud computing, autonomous vehicles, and other areas. Many view these partnerships as AMD’s attempt to compete with NVIDIA’s dominance, leading to optimism in the market.
Nevertheless, the recent decrease in the stock indicates that investors are being careful and are holding off until they see actual outcomes from these collaborations. Although AMD’s foundation is strong, investors are seeking tangible evidence that the AI progress will generate revenue quickly.
AMD’s chart shows a volatile landscape, with critical levels that could determine the stock’s near-term trajectory:
With the current bearish momentum, breaking above these levels will be crucial for a sustained recovery. Otherwise, AMD might continue trending down to test the next support at $122.10.
For now, AMD’s price action remains uncertain. While the recent AI partnerships provide a positive outlook, the technical setup suggests caution. Investors should consider waiting until a confirmed reversal occurs above important resistance levels before getting involved. Yet, individuals with a more extended perspective might see AMD’s decrease as a compelling opportunity to invest, considering the company’s solid presence in AI and computing.
This post was last modified on Nov 01, 2024, 12:27 GMT 12:27