Fundamental Weakness Meets Technical Strength, AMD at a Turning?

Feb 5

Hello readers,

Advanced Micro Devices (AMD) posted strong Q4 earnings, with a 24% year-over-year revenue increase to $7.66 billion, slightly surpassing estimates. Adjusted EPS came in at $1.09, just above expectations.

However, the data center segment underperformed, bringing in $3.86 billion a 69% YoY increase but below the $4.1 billion analysts had anticipated. Additionally, CEO Lisa Su cautioned that data center sales may decline by 7% in the next quarter. This guidance, combined with the revenue miss, led to an 8.2% pre-market drop in AMD’s stock price.


Technical Perspective

The price has finally arrived at the first key area of interest. This level has been anticipated for some time, and the fundamental reaction has now drawn the price close to the marked zone.

For those considering this as a potential investment, I can provide a small but valuable confirmation: from a technical standpoint, this is not a mistake to take, as this area holds the potential to generate strong liquidity for further growth.

Key criteria:
1. Strong horizontal price zone around the $100
2. The round number itself $100
3. The trendline since 2018
4. Channel projection
5. Equal waves from the top

For a more in-depth technical analysis, visit my Substack channel - content is now available for English readers. Simply go to my profile and click on "Website."


Regards,
Vaido

Disclaimer: This is not financial advice. Always conduct your own research and consider risk management before making any investment decisions.

Feb 5

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