Rarely has any company seen as disappointing a performance in the financial markets as Advanced Micro Devices (NASDAQ: AMD) has in 2024.
Although AMD stock started the year off with strong momentum, reaching an all-time high (ATH) of $210 on March 7, it’s all been downhill from there — with the exception of a temporary move to the upside in July that was still ultimately unsuccessful.
At press time, a single AMD share was trading at $124.75 — in the last 30 days, prices have decreased by 124.75, bringing year-to-date losses for AMD stock up to 9.98%.
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While the results thus far have been less than stellar, researchers generally remain bullish on Nvidia’s (NASDAQ: NVDA) only rival in the GPU market. Recently, one stock trading expert has shared his take on Advanced Micro Devices — and he’s quite confident that AMD will stage a recovery that will see stock prices enter an extended uptrend.
Quant trader sees 30% gain in the cards for AMD shares in Q1 2025
The most recent consensus among Wall Street equity researchers is that Advanced Micro Devices stock will see prices increase by 30% in the next 12-month period.
However, Peter DiCarlo, a renowned technical analyst and quant trader, thinks that the price of an AMD share will see such a surge much faster, per a December 27 post made on social media platform X.
DiCarlo believes that chipmaker will have the year that Tesla (NASDAQ: TSLA) has had over the past six months in 2025 — more importantly, he stated that the price of an AMD share could go up by as much as 30% in the first quarter of the year alone.
In a three-minute clip accompanying the X post, he highlighted the existence of a significant $1.5 billion volume shelf at the $120 price point — a mark that, according to the expert, AMD stock is unlikely to go below.
In contrast, the volume accompanying the drop from $150 to $122 was meager — leading the expert to conclude that those losses could be completely erased within two months, the same period of time it took prices to make the initial downward move.
Expert believes institutions have driven AMD stock prices to low levels
DiCarlo also believes that the downward moves seen over the past couple of weeks with AMD are the result of a stop hunt. In essence, a stop hunt is an effort by institutional investors to drive prices below crucial levels of support, thereby triggering stop-loss orders on a massive scale. This drives prices further down and provides institutional investors with a more attractive entry point — which they often take advantage of by using options.
All in all, the analyst believes that AMD stock will reach a price of $170 before encountering resistance. He did, however, highlight that he expects to see an upward price trajectory in the next three, six, and even twelve months.
DiCarlo also revealed that he is holding call options on AMD stock with an expiration date in February 2025. Although bullish on the whole, he did state that if the stock closed in the red on the weekly chart, he would close out his options position and purchase calls with a longer timeframe in mind.
Featured image via Shutterstock
