Advanced Micro Devices (NASDAQ: AMD) may be nearing the end of its current bullish cycle, with technical analysis suggesting the stock could soon face a major correction.
This caution comes despite a strong rally fueled by advancements in artificial intelligence. At the close of the last trading session, AMD was valued at $258.01, down 0.6% for the day but up nearly 115% year to date.
AMD stock price prediction
Now, according to an October 27 analysis by TradingShot on TradingView, AMD could be entering a cooling phase after an explosive run, with technical signals pointing to a potential retracement toward $110.
The projected downside aligns with the one-month moving average support near $109.70, a zone that has historically marked major bottoms for the stock.
The analysis noted that AMD’s six-year bullish channel is now nearing exhaustion, with the stock trading near the upper boundary, a level that previously triggered significant corrections. On the weekly chart, AMD remains well above its 50-week MA at $171.30 and 200-week MA at $138.50, indicating stretched conditions.
Notably, after climbing over 240% from its March 2024 low, AMD’s momentum appears to be fading, as the one-week RSI tests a long-term resistance region that coincided with the 2021 and 2023 peaks.
While the bullish leg could theoretically extend toward $320, matching the 1.236 Fibonacci extension, TradingShot warned such a move would likely be unsustainable.
AMD stock fundamentals
Beyond the technical picture, AMD continues to gain traction in the AI chip race, closing in on Nvidia’s (NASDAQ: NVDA) dominance. The company recently secured a $90 billion deal with OpenAI to supply up to six gigawatts of data center GPUs by 2030, helping drive its stock surge in 2025.
AMD’s new MI355X GPUs, built on CDNA 4 architecture, deliver up to 35× more performance than prior models and offer lower AI processing costs. Clients such as Oracle have already ordered more than 130,000 units.
The company also plans to launch its MI400 series in 2026 under the Helios data-center platform, expected to be 10× more powerful than current models.
Meanwhile, AMD is set to report Q3 2025 earnings on November 4, with CEO Lisa Su expected to provide updates on the OpenAI partnership and its long-term role in driving AI growth.
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