AMD Stock 10% Dive After 24% Surge: Is the Downtrend Still On?
Yesterday the AMD share price closed 24% higher after US president Trump tariff freeze, but it has given back 10% today.
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Yesterday the AMD share price closed 24% higher after US president Trump tariff freeze, but it has given back 10% today.
AMD’s Rally Stalls After Explosive Rebound: Hopes Fade or Profit-Taking Setting In?
After staging an eye-catching 24% surge on Wednesday, Advanced Micro Devices (AMD) is losing momentum as Thursday’s session unfolds. The stock, which had been under heavy selling pressure since peaking above $227 in March 2024, briefly reignited bullish sentiment with a sharp bounce from $76.48 to $96.84 in just one day.
This dramatic rebound was largely driven by a broader market recovery, sparked by optimism over a potential 90-day tariff freeze floated by President Trump. Hopes that this pause could ease tensions around U.S. tech exports helped lift sentiment across equities—particularly in the semiconductor space.
However, today tells a different story. AMD opened Thursday’s session with a bearish gap lower at $91.02 and continued sliding throughout the morning, now trading just under $86—marking a nearly 10% drop from Wednesday’s close. The swift reversal suggests a wave of profit-taking as traders lock in gains from the prior session’s historic rally.
While macro tailwinds briefly boosted confidence, today’s pullback reflects lingering caution and uncertainty in the tech sector.
AMD Stock Chart Daily – Push Above the 50 SMA Would End the Bearish Trend
Over the past year, AMD has suffered persistent downward momentum. The stock had shed more than 65% of its value from its 2024 highs, impacted not only by macroeconomic headwinds but also by growing competitive pressure from Nvidia in the AI chip space. The situation worsened last week after analysts at Jefferies downgraded the stock, citing a widening performance and innovation gap in high-end AI computing hardware. But, yesterday’s surge brought back some of those losses and AMD shares are now 68% down.
Bullish Sentiment Returns—But Buyers Fil to Reach Resistance
Wednesday’s gains came amid a broader tech revival. Key names like Apple, Tesla, and Amazon also surged, signaling a widespread return of bullish appetite. For AMD, this sharp upward movement stands out given the company’s recent struggles to hold onto positive momentum. However, the road to a confirmed reversal remains uphill: AMD still needs to break through several major moving averages that have capped previous rallies and maintained the bearish trend on the daily chart and buyers didn’t even reach them.
Bright Outlook for Semiconductors and AI Integration
Despite previous challenges, the long-term outlook for the semiconductor industry remains highly optimistic. According to projections from the Semiconductor Industry Association (SIA), the sector is on track for a robust recovery in 2025, with global semiconductor sales anticipated to surge by 20%, reaching over $625 billion. This expected rebound is underpinned by accelerating demand for chips across a range of industries, from consumer electronics to AI and cloud infrastructure.
Advanced Micro Devices (AMD) is especially well-positioned to capitalize on this growth, thanks to its expanding footprint in artificial intelligence. In 2024, AMD’s data center AI division alone brought in more than $5 billion in revenue. Much of this momentum was driven by adoption of its MI300X accelerator chips by major tech giants such as Microsoft and Meta, both of which are rapidly scaling their AI infrastructure.
Looking ahead, the demand for AI-driven computing power continues to grow. Cloud leaders like Amazon Web Services (AWS), Google Cloud, and Alibaba Cloud are expected to launch over 100 general-purpose AI instances by the end of Q4 2024. This trend is expected to drive even greater uptake of AMD’s Instinct GPU accelerators among hyperscale data center operators.
AMD is also aggressively moving forward with its next-generation product lineup. Production is already underway for the MI325X, while the MI350 series—featuring the advanced CDNA 4 architecture—is in development. This new series promises to deliver up to 35 times the performance of its CDNA 3 predecessor, marking a major leap in AI computing capabilities. The company plans to begin customer sampling of the MI350 within the current quarter and aims to ramp up volume production by mid-2025.
These developments position AMD to play a central role in the AI hardware race, giving it strong upside potential as the broader chip market recovers. With next-gen products on the horizon and demand for compute power continuing to grow, AMD’s AI strategy may become a key driver of its long-term resurgence.
Conclusion: Is This the Bottom for AMD?
While one powerful session doesn’t erase a year-long downtrend, AMD’s recent surge may signal a turning point—particularly as the macro environment stabilizes and the company’s AI roadmap gains momentum. With tariff tensions easing, tech sentiment improving, and strong AI demand ahead, AMD may finally have the foundation it needs to stage a sustained comeback. Investors will be closely watching whether this rally has staying power or is just another temporary bounce in a volatile market.
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