Strong Bounce in AMD Stock Continue as Positive News Keeps Coming
The AMD share price surged 17.5% last week after the tariff pause, while the positive news is accumulating, which will likely keep the stock bullish this week as well.
AMD Rebounds Sharply After Weeks of Decline
Advanced Micro Devices (NASDAQ: AMD) began last week under continued pressure, dropping to a low of $76.48 on Tuesday—extending its multi-week slide. The stock had fallen sharply from its March 2024 high of $227, marking a 65% correction amid broader weakness in tech and semiconductor names. However, by midweek, sentiment reversed sharply. On Wednesday, AMD shares surged, closing the day at $96.84—a powerful turnaround that capped off a weekly gain of 17.5%.
This recovery was driven in large part by improving sentiment in the semiconductor sector and broader tech landscape. News of a three-month suspension on new U.S. trade tariffs—excluding China—provided a much-needed boost to risk assets and helped spark renewed interest in chip stocks. AMD’s swift rebound also brought its price near the crucial 100-week simple moving average, a level closely watched by technical traders.
Tariff Revisions Ease Pressure on Tech Sector
Over the weekend, positive developments continued to support equity markets. U.S. Customs and Border Protection confirmed late Friday that several key tech-related imports—such as smartphones, laptops, semiconductors, flash drives, and flat-panel displays—would be exempt from the higher 145% tariffs recently proposed for Chinese goods. Instead, many of these products would fall under a reduced 20% tariff regime.
President Trump echoed this sentiment on Sunday via Truth Social, indicating that while tariffs on Chinese goods remain in place, electronics and semiconductors will be treated differently for now due to their importance to national security. However, future sector-specific levies on electronics and pharmaceuticals are still being considered, according to comments made by Howard Lutnick during an interview with ABC News.
These developments offered some short-term relief to the tech sector, lifting investor confidence and helping AMD recover from months of heavy selling. Market participants now expect that ongoing negotiations or further tariff postponements could continue to support stock prices.
AMD Stock Chart Weekly – Bulls Return
Despite the strong midweek rally, AMD shares faced a brief pullback on Thursday, falling 8% as traders locked in profits and renewed trade tension fears crept back into the market. Nonetheless, the stock regained momentum on Friday, climbing over 5% to close the week on a strong note.
Encouragingly, AMD ended the week above its 200-week simple moving average, a long-term technical support level that could act as a springboard for further gains. If bullish momentum continues, the stock could soon test resistance near the 100-week SMA, especially if positive tariff-related news persists.
AI and Data Center Growth Fuel Long-Term Outlook
Beyond the short-term price action, AMD’s fundamentals remain strong. The company has aggressively positioned itself within the artificial intelligence space and derives more than 50% of its annual revenue from its data center segment. Following a record-breaking $26 billion in revenue in 2024, AMD expects Q1 2025 revenue of around $7.1 billion—slightly down sequentially but still reflecting 30% growth year-over-year.
The company’s outlook for 2025 remains optimistic, with management projecting double-digit growth in both revenue and earnings per share, fueled by continued expansion in data center CPUs and GPUs.
Looking Ahead: Can AMD Push Higher This Week?
With improved sentiment in the tech space, a temporary reprieve on electronics tariffs, and a strong technical recovery underway, AMD may have room to extend last week’s rally. Traders and investors will be watching closely to see if the stock can hold above its recent breakout levels and continue its climb toward the $100 mark and beyond. While volatility tied to U.S.-China trade relations remains a key risk, the broader backdrop appears more supportive for now—especially as equity futures opened the week in positive territory.
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