Advanced Micro Gadgets Inc (NASDAQ: AMD) rolled into profits like an AI rocket and came out looking more like a weathered jet looking for its runway.
In spite of a fourth-quarter profits beat, the stock moved about 8% after hours on Tuesday and another 7% premarket Wednesday. Assistance and gravity, it appears, matter more than heading earnings.
AMD’s $221 Geological fault
Trading near $224.65, AMD is hovering simply above its 50-day moving average– clustered in the $221–$ 222 zone– the most essential line on the chart.
For 3 months, this level functioned as resistance; bulls now need to turn it into assistance. Simply overhead sits a tidy space near $223.60, turning this band into a real tug-of-war in between dip purchasers and momentum sellers.
An everyday close listed below $221 would efficiently break the cup-and-handle setup that traders have actually been safeguarding considering that late in 2015.
Stock Momentum Cooling, Not Collapsing
The technical image is bruised however not broken. The RSI (relative strength index) at 44.5 beings in neutral area– far from panic– while the MACD (moving typical convergence/divergence) sign at 5.89 programs fading yet still favorable momentum.
The long-lasting pattern stays undamaged above the 200-DMA at $178, however the short-term damage is apparent: AMD is well listed below its 8-DMA at $244.75 and 20-DMA at $234.15, which discusses why every bounce feels heavy and brief.
Why This Matters Now
The selloff shows a harsher truth check: data-center development is slowing year over year, China need is lagging as MI325 awaits regulative clearance, and the long-promised CPU rise hasn’t emerged.
That’s why this isn’t simply another dip– it’s a trustworthiness test for the AI story. If bulls protect the $221–$ 222 zone, the chart might support rapidly. Lose it, and the knife-edge tilts towards a much deeper reset.
Financier takeaway: The next couple of sessions will choose whether AMD remains an AI momentum story– or develops into a “show-me” stock.
Image: Shutterstock
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