AMD Shares Surge After Partnership Announcement with OpenAI
According to media reports:
→ The deal involves AMD supplying processors of various generations to support the deployment of artificial intelligence infrastructure with a total capacity of 6 gigawatts.
→ The partnership is expected to generate billions in revenue for AMD starting in 2026.
→ Barclays analysts have raised their price target for AMD shares from $200 to $300.
The major announcement fuelled a sharp rally of around 30% in AMD’s share price, though this surge triggered aggressive selling pressure near the historic peak around the $227 level.
Technical Analysis of AMD Stock Chart
Price action analysis shows that:
→ The trading session opened with a wide bullish gap, breaking through the key psychological level of $200.
→ The price also surpassed previous resistance levels at $180 and $190.
→ During the session, the price pulled back, forming two large bearish candles on the four-hour chart.
A reasonable interpretation:
→ The initial reaction was highly emotional, but the optimism is fading quickly.
→ The price movement indicates strong bearish activity following the sharp rise.
Selling pressure is being driven by:
→ Investors locking in substantial profits now, as the deal’s financial impact will unfold gradually over time (creating future opportunities to re-enter at lower prices).
→ Technical signs of an overbought market.
Signs that AMD shares may be overbought include:
→ The RSI indicator, which exceeded 80 yesterday.
→ The price opening significantly above the upper boundary of the ascending channel.
Possible Scenarios for AMD Stock Price
Short-term: Bearish activity could drive a correction towards:
→ The median line of the ascending channel, where demand and supply typically balance.
→ The psychological level of $200, which may influence sentiment among traders reacting to the news.
Long-term: AMD shares remain fundamentally attractive, given that:
→ The AI boom continues to serve as a major growth driver.
→ Market participants expect the Federal Reserve to begin cutting interest rates.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
According to media reports:
→ The deal involves AMD supplying processors of various generations to support the deployment of artificial intelligence infrastructure with a total capacity of 6 gigawatts.
→ The partnership is expected to generate billions in revenue for AMD starting in 2026.
→ Barclays analysts have raised their price target for AMD shares from $200 to $300.
The major announcement fuelled a sharp rally of around 30% in AMD’s share price, though this surge triggered aggressive selling pressure near the historic peak around the $227 level.
Technical Analysis of AMD Stock Chart
Price action analysis shows that:
→ The trading session opened with a wide bullish gap, breaking through the key psychological level of $200.
→ The price also surpassed previous resistance levels at $180 and $190.
→ During the session, the price pulled back, forming two large bearish candles on the four-hour chart.
A reasonable interpretation:
→ The initial reaction was highly emotional, but the optimism is fading quickly.
→ The price movement indicates strong bearish activity following the sharp rise.
Selling pressure is being driven by:
→ Investors locking in substantial profits now, as the deal’s financial impact will unfold gradually over time (creating future opportunities to re-enter at lower prices).
→ Technical signs of an overbought market.
Signs that AMD shares may be overbought include:
→ The RSI indicator, which exceeded 80 yesterday.
→ The price opening significantly above the upper boundary of the ascending channel.
Possible Scenarios for AMD Stock Price
Short-term: Bearish activity could drive a correction towards:
→ The median line of the ascending channel, where demand and supply typically balance.
→ The psychological level of $200, which may influence sentiment among traders reacting to the news.
Long-term: AMD shares remain fundamentally attractive, given that:
→ The AI boom continues to serve as a major growth driver.
→ Market participants expect the Federal Reserve to begin cutting interest rates.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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