AMD Stock Fueled By Optimism About AI Opportunity—Important Technical Levels to Monitor
- January 17, 2024
Key Takeaways
- 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.
- AMD’s share price closed above a flag pattern, suggesting further bullish momentum.
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.
Source: TradingView.com.
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.