Advanced Micro Devices (NASDAQ: AMD) could be headed for a significant correction toward $335 if a key technical support level breaks, according to a TradingView analysis.
In a July 9 TradingView post, the analyst identified AMD’s daily 50-day moving average (MA) as the critical trigger level.
If that support fails, the stock could decline toward its 200-day moving average (MA200), projected near $335, with the move potentially unfolding around August 11, 2026.
Notably, AMD has been one of the semiconductor sector’s strongest performers this year, gaining over 150% in 2026 and trading at $557 as of press time after reaching highs above $560.
The analysis notes that while AMD continues to post higher highs on the daily chart, its Relative Strength Index (RSI) has been forming lower highs since late April.
This bearish divergence is often viewed as a sign that bullish momentum is weakening despite rising prices.
A similar pattern emerged after AMD’s late-2025 rally, when weakening RSI momentum preceded a break below the MA50 and a prolonged correction.
AMD stock fundamentals
The current setup follows an even stronger advance, with AMD rising about 213% from its March 2026 lows compared to roughly 248% during the previous rally.
According to the analysis, the MA50 remains the key level to watch. AMD has repeatedly held above the trend line despite several pullbacks, but a decisive breakdown could trigger a deeper retracement.
In that scenario, the stock would likely seek support at its MA200, which the chart projects near $335.
The bearish technical setup emerges despite AMD’s strong business performance. The company reported first-quarter revenue of $10.3 billion, up 38% year-over-year.
In comparison, data center revenue surged 57% to a record $5.8 billion, driven by demand for EPYC server processors and AI accelerators.
AMD has also guided for roughly $11.2 billion in second-quarter revenue, with earnings scheduled for August 4. The timing is notable because the projected weakness would begin shortly after that earnings event, making the report a potential catalyst for either validating or invalidating the bearish setup.
