Advanced Micro Devices Stock News and Forecast: AMD faces resistance near $147
- AMD rose 1.6% on Thursday.
- Advanced Micro Devices increased its wafer supply deal with GlobalFoundries.
- Thursday's AMD price surged above the 21-day moving average.
Advanced Micro Devices (AMD) stock rose 1.6% on Thursday and broke a prior swing high with a session high of $149. Though the end of the session pushed the price down below $147, AMD price surmounted the 21-day moving average for the first time since December 3. This is a sign that this rally could continue through the new year.
Advanced Micro Devices Stock News: AMD adds $500 million to silicon wafer deal with GlobalFoundries
Advanced Micro Devices amended a regulatory filing on Thursday. The chip maker has expanded the value of its $1.6 billion deal with former subsidiary GlobalFoundries that was announced in May. The prior deal dealt with silicon wafer supply through 2024. The new deal calls for increasing the deal to $2.1 billion worth of silicon wafers from 2022 to 2025. GlobalFoundries is the product of AMD spinning out its foundry operations in 2009.
President and CEO Lisa Su will host AMD's 2022 Product Premiere on Tuesday, January 4, 2022. Su will show off innovations in AMD's new Ryzen processors and Radeon graphics cards.
AMD key statistics
| Market Cap | $167 billion |
| Price/Earnings | 43 |
| Price/Sales | 11 |
| Price/Book | 23 |
| Enterprise Value | $164 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, $142.50 |
Advanced Micro Devices Stock Forecast:
Thursday's 1.6% move pushed AMD shares above the 21-day moving average. While that average is still above its 9-day counterpart, other signs give the impression that the rally is ready to continue.
For one, the Moving Average Convergence Divergence (MACD) indicator appears likely to cross over in the coming sessions as it has narrowed its distance with the signal line.
Though Thursday faced resistance around $147 and $148, this has been seen before on December 7, 8, 9, 15 and 16. Still the high at $149 demonstrates that the market expects this one to aim for $150 and maybe even $160 soon enough.
AMD 1-day chart
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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.
