Up almost 10%, which is more than double other chip stocks. Maybe due to the keynote yesterday about AMD’s new chips for AI, the Instinct™ MI300X Accelerators?
Advanced Micro Devices (AMD) is the IBD Stock of the Day for Thursday as AMD stock surges back above a cup-with-handle buy point with significant trading volume. AMD on Wednesday unveiled a line of chips optimized for artificial intelligence, challenging AI kingpin Nvidia (NVDA) in a red-hot market.
Well here’s some TA on why it may have popped.
AMD’s event featured appearances from executives with Microsoft (MSFT), Meta (META) and Oracle (ORCL). The companies each said they are using the chips.
Certainly some big names help along with the price competition it will create as these major corporations would like to get some kind of a price break on these AI units.
While AMD did not update its sales forecast, it did provide updated estimates on the total market. AMD projects spending will surge 70% annually to reach more than $400 billion in 2027. That’s up from a previous projection of $150 billion.
If AMD can capture 10% of this market over the next few years that would be 40 billion dollars.
With its gains Thursday, AMD stock jumped back above a $122.11 buy point for a cup-with-handle base on its daily chart, according to IBD MarketSmith.
Meanwhile, AMD stock’s Relative Strength Rating of 91 out of 99 is at its highest point since mid-June. The Relative Strength Rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks. The best growth stocks typically have RS Ratings of at least 80.
Further, AMD ranks second among 37 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. NVDA is the top stock in the group.
AMD stock carries an IBD Composite Rating of 90 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, AMD stock is on the IBD Tech Leaders list.
There’s a lot of reasons why AMD popped this week. Still it’s all good when you hold AMD as one of your core holdings…doc