Advanced Micro Devices Stock News: AMD moving averages forecast further bearish price action

AMD on Tuesday nearly produced a Downside Tasuki Gap pattern.
Advanced Micro Devices plans to reach a 30x energy efficiency figure by 2025 for its AI processors.
9-day moving average moved below 21-day moving average on Tuesday.

Clay Webster FXStreet

Advanced Micro Devices (AMD) saw its 9-day moving average drop below its 21-day moving average on Tuesday in what is likely a sign that Monday's deep red candlestick will be continued by a downturn despite Tuesday and Wednesday's rebound. The semiconductor hot stock is flat at the time of writing but has traded as high as $147.03 and as low as $142.70 in Wednesday's session.

Advanced Micro Devices (AMD) Stock News: a new goal for energy efficiency

In a blog post last week, Advanced Micro Devices announced a new goal. It wants to produce 30x energy efficiency for its accelerated computing processors used by the artificial intelligence and high-performance computing sectors. This amounts to beating the industry's recent past progress on this metric by about 2.5x per year. It would mean reducing the power needed to run these elite processors by 97%.

In late November Bank of America analysts said that for the first time in its history AMD stock had a greater percentage of ownership by investment funds than rival Intel. Management at Intel may have read the note as on Monday they announced their intention to spin out their autonomous driving subsidiary Mobileye. The IPO is tentatively scheduled for some time in mid-2022.

AMD CEO Lisa Su announced at a conference last week that she expects the acquisition of Xilinx to be completed before 2022. The chip maker has received anti-trust approval in the US and Europe but is waiting on feedback and approval from third-party partners in China. Rival Nvidia has recently seen its proposed merger with Arm become the subject of a lawsuit by the Federal Trade Commission.

AMD key statistics

Market Cap	$174 billion
Price/Earnings	44
Price/Sales	12
Price/Book	24
Enterprise Value	$171 billion
Operating Margin	21%
Profit Margin	27%
52-week high	$164.46
52-week low	$72.50
Short Interest	6%
Average Wall Street Rating and Price Target	Buy, $141.50

Advanced Micro Devices (AMD) Stock Forecast: the downturn should continue

Following the Moving Average Convergence Divergence (MACD) crossing lower on December 1, now the 9-day moving average is crossing below its 21-day counterpart. The shorter average has been above its longer-dated cousin since October 13. Monday's crash, however, has made the current month pullback seem more longer term in nature.

Monday's low of $134.23 was below the low of November 5, another signal that all was not well. The past few sessions produced what nearly amounted to a Downside Tasuki Gap. This is a bearish continuation pattern. Friday and Monday's plunge produced the gap. Tuesday, however, saw AMD price action close above the gap, just barely, so maybe we should discard this signal.

FXStreet View: We think the bearish pullback will continue with the crossing of the short-term moving averages. Bulls should wait for $120 to enter.

AMD 1-day chart

Like this article? Help us with some feedback by answering this survey:

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD stuck as the RBA talks tough into a slowdown

The Australian Dollar is going nowhere in a hurry, and the contradiction at its core explains why. The Reserve Bank of Australia keeps dangling the prospect of another hike, yet the economy it governs just expanded 0.3% in the first quarter, a clear step down from the prior pace. A central bank threatening to tighten into a visible slowdown is not a recipe for conviction in either direction, and the tape shows it.

USD/JPY: Japanese Yen coiled at the line, leaning on everyone but Japan

The Yen is doing very little, and that stasis is the whole story. USD/JPY sits glued near 160.00 not because Japan has found new strength, but because two outside forces are fighting to a draw over it: a US rate complex that keeps the dollar bid, and a Ministry of Finance that refuses to let the line break.

Gold declines below $4,500 on stalled US-Iran ceasefire talks, US NFP data looms

Gold price edges lower to near $4,470 during the early Asian session on Friday. The precious metal remains volatile amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday.

Bitcoin falls below $64K as demand turns negative, short-term holders' selling intensifies

Bitcoin has fallen below $64,000 on Thursday amid weakening market demand and mounting selling pressure from short-term holders. The leading cryptocurrency slipped toward the $63,000 level amid a broader risk-off environment, with several key metrics signaling one of the most challenging periods of the current market cycle.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.