AMD Stock Gains 4% on Japan CPU Market Growth as Nasdaq Rebounds Late
Today the AMD stock gained 4% as the CPU market share in japan reached its peak, while Nasdaq index gained around 1%.
Since peaking at $227.30 in March 2024, AMD’s stock has been in a steady decline, weighed down by investor concerns about its ability to compete in the fast-evolving AI sector. These worries intensified in February, driving the stock below $100 and increasing overall market turbulence. By Tuesday, AMD had dropped 58% from its high, hitting a low of $94.73.
AMD Stock Chart Daily – Trying to Reverse Downtrend After Struggles in AI Market
The 20-day simple moving average (SMA) has acted as a strong resistance level, continuously pushing prices lower. Despite rising demand for AI-driven processing power, AMD has struggled to capitalize on the sector’s momentum, facing persistent selling pressure.
AMD’s latest quarterly earnings report painted a mixed picture. While the company’s overall Q4 revenue exceeded expectations, its data center division underperformed, highlighting ongoing challenges in competing with dominant industry players. Even with an optimistic outlook for the next quarter, AMD’s stock continued to decline following disappointing data center results.
Bullish Reversal Fueled by Market Share Gains in Japan
However, in the past week, AMD has staged a strong rebound, breaking back above $100. Today, the stock opened with a bullish gap and surged to $106.15, driven by news that AMD’s Radeon GPUs now hold a record 45% retail market share in Japan.
AMD is targeting a 70% market share in the region, but achieving this goal depends heavily on a stable supply chain. The company cited strong demand as the reason for recent supply issues, but some board members have pointed to manufacturing constraints as a potential hurdle in expanding further.
Nasdaq and S&P 500 Stage Late-Session Comeback
The broader market also saw a strong reversal in the US session, with the S&P 500 and Nasdaq recovering late in the day. The Nasdaq, which has been in a downtrend since mid-February, has struggled as tech stocks lost value in recent weeks.
On Friday, the Nasdaq surged over 2.5%, marking its best single-day performance since January. Today’s session saw another bullish move, with the index approaching 20,000 points before pulling back slightly, but still closing in positive territory.
Conclusion: AMD and Nasdaq Rebound, But Challenges Remain
AMD’s strong rally today highlights investor optimism surrounding its growing GPU market share in Japan, but challenges remain in the AI and data center sectors. Meanwhile, the Nasdaq’s late-session bounce signals renewed interest in tech stocks, though market volatility persists.
As AMD continues to expand its market share, traders will be watching whether it can sustain momentum and overcome supply constraints. Likewise, the broader market’s ability to hold recent gains will be key in determining the next trend for tech stocks.
Nasdaq Index Live Chart
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