Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- AMD stock price is cracking under pressure despite beating revenue forecasts and giving a strong guidance for the current quarter.
AMD stock price is on the downtrend for the second successive day as investors ignore its forecast-beating earnings released on Tuesday. The chipmaker’s stock was down by more than 8% at 11.20 EST, with the mixed results triggering a selloff that could wipe out a significant portion of the 17% gains registered in the last month.
Advanced Micro Devices (NASDAQ: AMD) reported revenues of $7.68 billion in the second quarter of the year, translating to a 32% year-on-year growth and comfortably consensus Wall Street analysts median forecast of $7.43 billion. However, a 12% QoQ decline in its data center to $3.24 billion triggered fears that AI growth might not be as strong as previously thought, despite a 14% YoY growth in that segment. Many investors view this as a potential precursor to reduced margins, adding downward pressure on the stock. Meanwhile, the company’s adjusted EPS came in at $0.48, slightly below the median forecast figure of $0.49.
AMD gave a strong guidance for the current quarter, estimating that it could earn $8.7 billion in revenue, beating analysts forecast figure of $8.4 billion, but leaving out expected inflows from China. Export restrictions have forced the company to develop MI308 processors specifically targeting the Chinese market. However, it has had to write off $800 worth of inventory related to that market as a result of the trade barriers. This has dampened investors expectations of income from a strong market, and the resulting sentiment will likely keep AMD stock price subdued in the near-term.
AMD Stock Price Prediction
The momentum on AMD stock price calls for further downside if action stays below $165.10. Initial support will likely be at $161.25. However, if the sellers extend their control, the stock will break below that level and could test $156.55 in extension.
On the other hand, going above $165.10 will shift the momentum to the upside, with primary resistance likely to be at $168. Action above that level will invalidate the downside narrative, and a stronger momentum could result in further gains that could test $170 in extension.
