Advanced Micro Devices (NASDAQ: AMD) has had a challenging start to 2025, sliding over 18% since the beginning of the year.
Despite delivering a double beat on both earnings per share (EPS) and revenue in its Q4 and FY 2024 earnings report on February 4, the results were overshadowed by a miss in data center revenue, which came in significantly below forecasts.
The disappointment has sent AMD shares lower, with the stock slipping to $98.85 as of press time, marking an 8% decline over the past month.
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While the company’s data center revenue jumped 69% year over year to $3.86 billion, it continues to lag far behind Nvidia (NASDAQ: NVDA), whose data center segment reported a 93% growth to $35.6 billion—nearly ten times AMD’s total in the segment.
Beyond data centers, AMD’s other divisions have done little to offset the slump. While client revenue, driven by strong demand for AMD Ryzen processors, climbed 58% year over year, gaming revenue tumbled 59%, and embedded processor sales fell 13%.
Despite the recent pullback, Wall Street remains largely optimistic, with many analysts viewing the dip as a buying opportunity.
Technical analysis spots massive buying opportunity for AMD stock
In addition to analyst optimism, noted technical analyst TradingShot has identified a bullish setup for AMD, projecting a rebound toward $320 in the next uptrend.
The stock has been in a downtrend for exactly one year following its March 4, 2024, peak, which marked a higher high within a five-year Channel Up pattern.
With AMD trading below its 200-week moving average (1W MA200), technical indicators suggest a strong long-term buying opportunity.
The analyst noted that the current downtrend aligns with the bearish leg of the Channel Up pattern, similar to a previous cycle where AMD bottomed two weeks after dropping below the 0.618 Fibonacci retracement level while staying above the 0.786 Fibonacci level.
“With the price trading below even its 1W MA200 (orange trend-line), there is a massive underlying buy opportunity on the stock for the long-term”.
Currently, AMD’s price is hovering just above the 0.618 Fib, while the 0.786 Fib sits slightly lower, near the bottom of the Channel Up.
Meanwhile, the one-week RSI is approaching oversold levels, aligning with the October 2022 bottom, a significant reversal point.
With these signals in play, analysts see a strong risk-to-reward (R/R) setup, with a potential bottom forming within the next three weeks. If the next bullish leg mirrors the previous 315% rally, AMD could be on track to surge toward $320 in the next major uptrend.
Featured image via Shutterstock
