- AMD stock looks likely to post its fourth consecutive week of gains.
- S&P Global PMI indices show outperformance in the services sector, while underperformance in manufacturing.
- AMD Gains at Friday Open, While Nasdaq Composite Fades.
- The resistance zone of $127 to $133 in May and June becomes the main bullish target.
The actions of Advanced Micro Devices (AMD) They are up less than 1% at the open, but technical data shows that the bulls could still push the stock price towards the $127 to $133 resistance zone very soon.
The Dow Jones Industrial Average gained 0.3% at the start of the session on Friday, following Thursday’s Thanksgiving break, but the NASDAQ Composite index opened 0.1% lower, possibly in an attempt to be part of the American Black Friday shopping festival.
The S&P Global Purchasing Managers’ Index (PMI) for November, released on Friday, shows the services sector reported 50.8, above the 50.4 reading that was expected. The manufacturing PMI is exactly the opposite: 49.4, instead of the expected 49.8.
AMD News
This week there is no news about AMD. The value of the semiconductor company has risen for the fourth consecutive week after the third quarter earnings report, which demonstrated the good performance of the stock despite the cyclical recession among chip manufacturers.
On October 31, AMD reported normalized funds from operations of $0.70, a slight improvement of 2 cents above consensus. Earnings of $5.8 billion, more than $106 million above consensus.
Nvidia (NVDA), AMD’s main competitor, is discouraging shareholders after reporting wildly optimistic earnings on Tuesday. Nvidia beat earnings consensus for the most recent quarter by more than $2 billion and similarly raised its sales outlook for the current quarter by more than $2 billion above consensus, to around $20,000. millions of dollars.
Nvidia shares sold off on Friday after the company said its HGX H20 chip, focused on artificial intelligence (AI) and created to circumvent sanctions imposed by the US government on China, would be delayed until the first quarter of the year. coming. However, the L20 PCIe and L2 PCIe chips are believed to be launched in China as planned. Huawei Technologies is expected to reap the rewards of Nvidia’s AI chips being sanctioned or delayed in the Chinese domestic market.
In the meantime, this may open a path to higher sales of AMD’s AI-equipped MI300A and MI300X chips. His CEO, Lisa Su, has stated that the MI300 chip is on track to become the fastest product to reach $1 billion in sales in the company’s history.
AMD Forecast
AMD stock continues to gain ground after beating earnings expectations at the end of October. After bottoming just above $93 in late October, AMD stock is now poised to enter the $127 to $133 resistance zone that pulled back bulls in May and June of this year.
The 9-day simple moving average (SMA) has created distance from its 21-day counterpart, and the rapid pace of the current recovery makes it quite likely that the semiconductor company’s stock could produce a new yearly high before the end of the year. anus.
AMD Daily Chart
A look at the weekly chart shows us that breaking the year’s high near $133 could give ambitious traders the idea that the November 2021 resistance point around $160 is possible.
However, investors should expect some sort of pullback before then. The weekly Relative Strength Index (RSI) shows a reading of 61, which is not yet at overbought levels. The daily RSI is approaching 66.
AMD Weekly Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
