|Image Source: AI Imagine|
Advanced Micro Devices (NASDAQ: AMD) stock has endured downward pressure in recent weeks, but AI-driven analysis suggests the share price may rebound to $101.70 by October 1. This bullish forecast comes even as the chipmaker trades around $100, down nearly 8% year-to-date.
Broader semiconductor stocks have struggled in 2023 amid Federal Reserve tightening and concerns about a potential economic slowdown. But AMD has outperformed peers like Nvidia (NASDAQ: NVDA) and remains a leader in key growth markets including data center chips.
AI Projects Near-Term Bounce
According to CoinCodex AI-powered technical analysis, AMD shares have strong upside potential in the coming weeks. Specifically, the algorithm predicts the stock will reach $101.70 by October 1 after recently trading around $100.
The forecast moderates further out, with the AI calling for $119.86 in one month’s time before declining to $71.27 in a year. Still, the near-term outlook is decidedly bullish.
AMD has swung between $99.45 and $111.82 over the past month. Its current positioning toward the lower end of that range aligns with bearish sentiment.
But the AI assessment indicates AMD may be oversold after its pullback. This presents an opportunity for investors to buy the dip before an expected rebound.
Stock Caught in Broader Downturn
Semiconductor stocks have underperformed in 2023 as the FOMC’s aggressive rate hikes raised concerns over demand. Rising rates also typically pressure tech and growth shares.
AMD declined along with peers as investors braced for potential economic fallout. Its 7.6% year-to-date drop outpaced the Philadelphia Semiconductor Index’s 4.3% slide. Nvidia plunged over 40%.
But AMD held up better than competitors thanks to its strong market position. The company commands over 25% of the CPU market versus Intel’s 72% share. Its data center revenue surged 45% in 2022.
Upcoming chips based on advanced 5-nanometer and 3-nanometer manufacturing should widen AMD’s technology lead over rivals. This keeps it better insulated from cyclical pressures.
Key Technical Levels
AMD recently found support between $100.17 and $100.33 formed by converging trendlines. This lines up with its 2022 volume-weighted average price around $100, a key long-term reference.
Losing this area risks steeper declines, especially if the 50-day moving average near $95 gives way. But holding above solidifies a base to stabilize and eventually pivot higher.
On the upside, AMD faces initial resistance from $104.35 to $107.29. Its falling 50-day moving average also lands in this zone, making it a level to watch.
Recapturing these marks opens the door to test the recent range high around $112. Above that sits the 200-day moving average at $114.66 which could provide another barrier.
Despite recent weakness, CoinCodex’s AI analysis sees upside ahead for AMD. Its projection for a rally back above $100 in the next month highlights bullish expectations.AMD’s strong competitive position in key semiconductor markets should make it more resilient than peers. Its promising product pipeline is another positive factor.
Traders will closely watch how AMD navigates key technical levels around $100 and $105. Sustaining the recent base could propel renewed upside as the AI forecast indicates. But breaking below support would spell further trouble.