Breakout from bullish chart pattern signals momentum shift as MI350 series gains Wall Street confidence
Shares of Advanced Micro Devices (AMD) jumped Thursday after analysts suggested the company’s latest artificial intelligence (AI) chips could match offerings from industry leader Nvidia (NVDA). Analysts at HSBC noted AMD’s MI350 chips appear competitive with Nvidia’s Blackwell chips, while next year’s MI400 series could challenge Nvidia’s upcoming Vera Rubin platform.
The bullish sentiment helped push AMD stock out of a technical flag pattern during Thursday’s session on the highest volume in more than a week. This breakout suggests a potential continuation of the stock’s recent upward trajectory. AMD shares are now up 86% from their early April lows and have gained 18% year-to-date. However, they still trail Nvidia over the past year due to a slower ramp in AI chip market share.
Technically, AMD is building strength. The 50-day moving average is converging toward the 200-day MA, setting the stage for a potential golden cross—a signal often viewed as bullish. The Relative Strength Index (RSI) is also trending higher, confirming strong momentum while remaining just below overbought territory.
Key levels to watch include overhead resistance near $175, where the stock previously peaked in May and October of last year. A move above this level could trigger further gains toward $215, a zone just below the March 2024 high marked by a bearish shooting star candlestick.
On the downside, support around $135—near the base of the flag pattern and a key level from last September—may attract buyers on any pullbacks. Deeper retracement could bring the $115 level into play, where a trendline connecting past peaks and troughs may offer technical support.
With a promising chip roadmap and renewed investor interest, AMD appears poised for a stronger push in the competitive AI space.
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