Will Dell and AMD Stock Extend Their Losses in a Rough Week?
The AMD stock has lost 14% this week while Dell stock is 11% lower, and if the negative sentiment continues today, the decline could be even larger.
AMD Stock Weekly Chart
Market Selloff Hits AMD and Dell Stocks
AMD and Dell stocks have taken a significant hit this week, with both companies losing over 10%. Following Dell’s Q4 earnings report and future guidance, AMD shares fell 5% yesterday, closing below the $100 mark, while Dell’s stock dropped 7%. The downward momentum persisted in after-hours trading, adding to the broader market weakness.
AMD Chart Daily – MAs Keep Pushing It Lower
On the daily chart, the 20-day simple moving average (gray) has acted as a strong resistance, consistently pushing prices lower. Despite the booming demand for AI-driven computing power, AMD has yet to benefit significantly, leaving its stock under continued selling pressure.
Dell’s Earnings Beat Expectations but Guidance Disappoints
Despite reporting rising earnings and revenue in Q4, Dell’s stock has fallen 10.77% this week. The company posted fiscal Q4 revenue of $23.9 billion, marking a 7% year-over-year increase but falling short of Wall Street’s $24.6 billion estimate. However, adjusted earnings per share came in at $2.68, beating analyst expectations of $2.52.
Investor sentiment turned cautious due to mixed guidance for the upcoming quarters. For Q1 2025, Dell projected revenue of $22.5 billion – $23.5 billion, below the $23.6 billion forecasted by analysts. Additionally, the company’s fiscal 2026 revenue outlook ranged from $101 billion to $105 billion, slightly under the consensus estimate of $103.4 billion.
Dell Stock Chart Weekly – The Decline Might Stop at the 100 SMA at $100
Dell shares slipped below $100 early this month, but found support at the 100 weekly SMA (green) where they bounced from. Bu the 50 SMA (yellow) turned into resistance at the top, rejecting the price. Now sellers will have to face the 100 SMA again, which stands at $100.
With both stocks facing technical resistance and weaker-than-expected forward guidance, the question remains—will AMD and Dell find support soon, or is there more downside ahead? Well, it seems like the AI hype is wearing off but I think it will die completely and both companies are good at AI hardware, so once the negative sentiment in stock markets is over, we might see some reprieve for these two companies.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals