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AMD ($AMD) has had a wild ride – soaring to $227 in early 2024 on AI hype, only to crash over 50% back to $95-$100. Now, investors are asking: Is this a buying opportunity, or is there more pain ahead?


The Good: Strong Growth in AI & Data Centers 🚀

  • 2024 Revenue: $25.8B (+14% YoY) – a record year!
  • AI Accelerator Sales: $5B+ (growing fast, used by Meta & Microsoft).
  • Server CPUs (EPYC) Up 94% YoY, dominating Intel in high-performance chips.
  • PC chip sales rebounding (+52% YoY).
  • Margins improving (~50%), strong balance sheet.

⚠️ The Challenges:

  • Gaming & Embedded revenue is weak (cyclical slowdown).
  • Still far behind Nvidia ($NVDA) in AI chips.
  • Competition is heating up – Intel & Nvidia aren’t sitting still.

The Bad: Stock in a Downtrend 📉

  • AMD has been sliding since March 2024, forming lower highs and lower lows.
  • $95-$100 is a key support zone – if it breaks, next stop could be $81-$82.
  • Upside resistance at $120-$130 – needs a breakout to reverse the trend.
  • RSI (~32) is oversold, hinting at a possible bounce.

Buy, Hold, or Sell?

Long-term investors: AMD looks like a buy at these levels, given strong AI growth and improving margins.

Short-term traders: Wait for a breakout above $120-$130 to confirm a reversal.

⚠️ Risk-averse investors: Be patient – if $95 support fails, we could see lower prices.

💡 Bottom line: AMD has strong fundamentals but is still in a downtrend. If you believe in its AI & data center growth, this could be a great buying opportunity – but it may take time to recover.