AMD Stock Jumps 7% Today, Breaks Downtrend – Path to $350?
The AMD stock has jumped above the descending trend line, gaining 7% today as market sentiment improves, while being 20% off the lows.
Breaking Out of a Bearish Phase
After a prolonged downtrend, AMD stock has shown strong bullish momentum, breaking above the 50-day SMA (yellow) today. This signals a potential trend reversal after months of declining prices. The 20 SMA (gray) and 50 SMA (yellow) had consistently pushed the highs lower, but today’s breakout suggests renewed investor confidence.
From AI Doubts to Market Strength
AMD stock peaked at $227.30 in March 2024 and has faced steady declines since then. Investor skepticism about the company’s ability to compete in the expanding AI sector contributed to the selloff, with concerns escalating in 2025 when AMD’s data center performance disappointed. Additionally, AMD’s conservative outlook for Q1 2025 further fueled fears about short-term growth, leading to a steep decline.
AMD Chart Monthly – The 50 SMA Held Again
Earlier this month, AMD stock had dropped 58% from its all-time high, hitting a low of $94.73. However, sentiment has improved significantly in the past two weeks, leading to a strong rebound. AMD closed above $100 last week following reports that Radeon GPUs now hold a record 45% market share in Japan’s retail sector.
Bullish Momentum and Future Prospects
Today, AMD stock surged above $110 after opening with a bullish gap, driven by reports that Nvidia’s RTX 5000 GPUs are facing limited stock availability, while AMD’s RX 9070 graphics cards are seeing stronger supply. This news has added to AMD’s bullish momentum, helping the stock break out of its downward trajectory.
With AMD bouncing off the 50 SMA (yellow) on the monthly chart, the stock is showing a pattern similar to its strong recovery in 2023 after the 2022 market retreat. If this trend continues, AMD could be on track for a major rally, potentially targeting $350 in the long run.
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