Analysts have highlighted that Advanced Micro Devices (AMD, Financial) is making significant strides in the AI chip sector, with their latest MI350 series potentially rivaling NVIDIA's (NVDA) current Blackwell chips. Next year's MI400 series is also anticipated to compete with NVIDIA's upcoming Vera Rubin platform. This positive outlook has contributed to AMD's stock price increase, which has risen 86% since April's low and 18% year-to-date. However, AMD's performance still lags behind NVIDIA over the past year due to a smaller market share in the booming AI chip market.
Technically, AMD's stock has been in a steady uptrend since April, recently breaking out of a flag pattern with high trading volume, indicating potential continued momentum. The 50-day moving average is approaching the 200-day moving average, setting the stage for a bullish golden cross. The Relative Strength Index (RSI) also supports a bullish momentum, being just below the overbought threshold.
Key resistance areas to watch are around $175 and $215. Support levels to monitor during potential pullbacks are $135 and $115, which could serve as entry points for investors.
