September 3 on the stock market was a repetition of the August scenario, where semiconductors were one of the worst-hit sectors, with Nvidia (NASDAQ: NVDA) losing 10% and Advanced Micro Devices (NASDAQ: AMD) stock losing almost 8% of its value.
The latest trading session for AMD stock saw its price fall to $136.94 after losing precisely 7.82% of its value, with pre-market data showing a 0.22% additional loss, signaling the potential continuation of the negative trend into the September 4 trading.
This potential heightened volatility in the stock market and within AMD stock motivated me to conduct technical analysis and compile expert opinions to determine the price of AMD shares one year from now.
Picks for you
Technical analysis of AMD stock
Technical analysis of the AMD stock price chart reveals that the negative trend will seemingly continue in the upcoming sessions.
AMD shares crashed through their closest support level at $144.78, and the $134 level reached at the beginning of August also seems under threat. Conversely, the closest resistance zone is now at $139.12, as AMD shares failed to surpass upper resistance levels.
AMD’s 50, 100, and 200-day simple moving averages (SMAs) further strengthen the bearish trend, showing that the current price is well below all three.
Another worrying indicator for this semiconductor stock is the relative strength index (RSI), which measures a single stock’s buying and selling pressure with a reading of 24.08, indicating oversold conditions.
Further examination of the remaining technical indicators reveals a “strong sell” rating, making up for a strong bearish sentiment.
Wall Street believes in AMD stock
Despite the setbacks and limited market share due to intense competition in the microchip sector, analysts from large Wall Street firms believe that Advanced Micro Devices is set for success next year.
On August 29, Northland Securities reiterated its “outperform” rating on AMD shares with a price target of $175 from August 21. The rating comes after the acquisition of ZT Systems for $4.9 billion, which analysts believe will strengthen AMD’s capabilities in delivering better new products and increase its competitiveness.
Citi released a note on August 21, in which its analysts reiterated their “buy” rating on AMD and an unchanged price target of $210. Experts highlight the potential the ZT Systems deal brings for semiconductor makers’ market positioning and further strategic directions.
On August 20, experts from Piper Sandler maintained their “buy” rating and a price target of $175. In line with their colleagues from Wall Street, they highlight the expertise and workforce the $4.9 billion deal will bring to the microchip producer.
Overall, Wall Street researchers have a “strong buy” rating for AMD shares, based on 26 “buy” recommendations and 6 “hold” ratings, and notably, no expert advised a “sell.”
The average price target for AMD shares is $190.25, representing a 38.93% potential upside from the latest closing price.
Current technical analysis, analyst ratings, and the latest closing price indicate that the current dip could present a potentially profitable entry point for investors.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
