Advanced Micro Devices (AMD) shares experienced gains in extended trading following the release of first-quarter earnings that exceeded Wall Street expectations. The company’s data center segment sales surged by 57%, alleviating concerns about a slowdown in AI spending. However, AMD warned that its results would be impacted by approximately $800 million in charges due to tightening export restrictions on chip sales to China.
Since the start of the year, AMD shares have risen 18% and nearly 30% from their April low, significantly outperforming the S&P 500. In after-hours trading, the stock rose 1.7% to $100.32.
Technical analysis reveals that AMD shares have been trending lower within a descending channel since October last year. Recently, the stock rallied toward the channel’s upper trendline and the 50-day moving average, which provided resistance in late March. The relative strength index (RSI) has crossed back above the 50 threshold, signaling improving price momentum.
Key support levels include around $93, near the October 2023 low, and $78, near the stock’s bear trap April low. Crucial resistance levels include $116, near a horizontal line connecting the December 2023 retracement low with peaks formed earlier this year, and $132, near last year’s August swing low and this year’s early-January countertrend high.
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