Advanced Micro Devices Inc (NASDAQ:AMD) shares are climbing on Thursday, supported by improved market sentiment following softer November inflation data. Additionally, the stock is moving higher alongside other chip names after Micron Technology Inc (NASDAQ:MU) posted stronger‑than‑expected quarterly results and upbeat guidance.
Advanced Micro Devices shares are advancing steadily. Why is AMD stock trading higher?
What Happened: Micron reported fiscal‑quarter revenue of $13.64 billion, beating analyst estimates of $12.83 billion, according to Benzinga Pro. Adjusted earnings came in at $4.78 per share, topping expectations of $3.95 per share.
Looking ahead, Micron projected second‑quarter revenue of $18.7 billion, give or take $400 million, above the $14.16 billion analysts had forecast. The company also guided for adjusted earnings of $8.42 per share, with a range of 20 cents, nearly doubling expectations.
At the same time, U.S. inflation data came in lighter than expected, giving broader markets a lift. Consumer prices rose 2.7% year‑over‑year in November, compared to economist forecasts of 3.1%.
The softer reading may be partly explained by technical factors. The 43‑day government shutdown pushed data collection into late November, a period marked by heavy holiday discounting, Reuters noted. The shutdown also led to the cancellation of October’s CPI release, creating gaps in the inflation data.
The disruption seems to have blurred the real picture of inflation. Many economists expect prices to pick up again in December, which could add strain on households already struggling with higher costs tied to import tariffs.
Technical Analysis: Advanced Micro Devices is trading below key moving averages, reflecting short‑term bearish pressure. The stock sits 5.3% under its 20‑day SMA and 12.1% below its 50‑day SMA, signaling difficulty in regaining upward momentum.
The RSI stands at 35.41, a neutral reading that leans toward oversold territory. While not in panic‑sell mode, the stock appears to be losing bullish momentum, making upcoming support levels important to watch.
MACD remains below its signal line, reinforcing bearish momentum. Unless the trend shifts, AMD could continue to face downward pressure. Key support lies at $194.50, with a break lower opening the door to further downside. On the upside, resistance at $226.00 will be critical; a breakout above this level could mark a trend reversal.
The golden cross in July, when the 50‑day SMA moved above the 200‑day SMA, initially pointed to a bullish outlook. However, with the stock now below shorter‑term averages, caution is warranted.
Looking at the 12-month performance, AMD has gained 67.00%, which reflects a strong longer-term trend despite recent struggles. This performance shows that while there may be short-term volatility, the stock has maintained a solid upward trajectory over the past year.
AMD Price Action: Advanced Micro Devices shares were up 2.15% at $202.40 at the time of publication on Thursday, according to Benzinga Pro.
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