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Nvidia Rival AMD Hits 52-Week Lows - Buying Opportunity Or More Pain Ahead?
AMDAMD(AMD) Benzinga·2025-02-27 17:01

Core Viewpoint - Advanced Micro Devices Inc. (AMD) is experiencing significant stock declines, with a 42.44% drop over the past year and a new 52-week low of 102.17,primarilyduetocompetitivepressuresfromNvidiaintheAIchipmarket[1][5].StockPerformance−AMD′sstockhasdecreasedby15.06102.17, primarily due to competitive pressures from Nvidia in the AI chip market [1][5]. Stock Performance - AMD's stock has decreased by 15.06% year to date and fell another 2.17% on February 27 following Nvidia's strong earnings report [1]. - The stock is trading below its five-day, 20-day, and 50-day exponential moving averages, indicating strong selling pressure [2]. - The 50-day simple moving average (SMA) is at 117.70, and the 200-day SMA is at 144.15,suggestingalonger−termdowntrendwithnosignificantsupport[3].TechnicalIndicators−TheMovingAverageConvergenceDivergence(MACD)indicatorshowsanegative3.75,indicatingacceleratingdownsidemomentum[3].−TheRelativeStrengthIndex(RSI)isat31.80,suggestingthatthestockisnearingoversoldterritory[3].FundamentalStrength−Despitethetechnicalchallenges,AMD′sfundamentalsremainstrong,withCEOLisaSuprojectingdouble−digitgrowthin2025drivenbyserverandGPUdemand[4].−Thecompanyhassecured144.15, suggesting a longer-term downtrend with no significant support [3]. Technical Indicators - The Moving Average Convergence Divergence (MACD) indicator shows a negative 3.75, indicating accelerating downside momentum [3]. - The Relative Strength Index (RSI) is at 31.80, suggesting that the stock is nearing oversold territory [3]. Fundamental Strength - Despite the technical challenges, AMD's fundamentals remain strong, with CEO Lisa Su projecting double-digit growth in 2025 driven by server and GPU demand [4]. - The company has secured 14 billion in design wins, representing over a 25% year-over-year increase, positioning it for long-term success [4]. - However, the Embedded segment has seen a 13% revenue decline, and Gaming revenue has dropped 59% due to weakening console demand [4]. Market Sentiment - Wall Street maintains a bullish outlook on AMD, with a consensus price target of $157.33, indicating a potential upside of 53.48% from current levels [5]. - The ongoing question is whether AMD can recover from its current downward trend or if the selling pressure will persist [5].