Peter Smith
⬤ Advanced Micro Devices experienced significant selling pressure as the stock tumbled into a major price gap that's been clearly visible on daily charts. The chances of AMD falling all the way to $170 look pretty slim right now, with most eyes on the $185 to $180 zone as a more realistic landing spot where the stock might catch its breath. The pullback comes after an impressive rally that carried AMD higher from its early-year lows to recent peak levels.
⬤ AMD traded near $206.02 after dropping $17.53, marking a 7.84 percent decline. The intraday low hit $204.53, showing just how intense the selloff was, while the current price action suggests continued weakness after recent support levels failed to hold. Trading volume spiked to around 66 million shares, well above normal levels, confirming that volatility has definitely picked up in the stock. The RSI sitting around 38 points to fading momentum as AMD approaches levels where buyers have stepped in before, which fits with the gap-zone theory.
⬤ Beyond the immediate technical pullback, AMD faces a bigger strategic hurdle: grabbing more market share in the booming AI hardware space. The competitive landscape remains tough with Nvidia still dominating the sector. AMD moving into this large unfilled gap makes sense as a natural cooling-off period after such an extended run higher, and that $185 to $180 target area lines up with zones where buying interest showed up in the past.
⬤ This gap zone matters because these price levels often determine whether a stock will keep trending, consolidate sideways, or bounce back. Since semiconductor stocks are heavily influenced by AI demand cycles, how AMD behaves between $185 and $180 could send important signals about market sentiment and the company's ability to hold ground against competitors. The stock's performance in this zone might shape how investors view AMD's position as the AI race heats up.
Peter Smith
