AMD stock price has staged a strong bull run this month as the artificial intelligence data center demand continues. It jumped to a high of $184.4 on Wednesday, its highest level since July 8, and 140% above the lowest level in April. 

AMD stock price technical analysis

The daily chart shows that the AMD share price has been in a strong surge in the past few months. It moved from a low of $76.8 in April to $184 today.

It moved above the 61.8% Fibonacci Retracement level. It has also formed a golden cross pattern, as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. 

Top oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued rising. Soaring oscillators is a sign that it has the momentum. 

AMD share price has moved above the important resistance level at $182, invalidating the double-top pattern that was forming. Therefore, technicals suggest that the stock will likely continue rising as bulls target the psychological point at $200. 

A move above that level will signal further gains, potentially reaching the resistance point at $227, the highest point in March. On the other hand, a drop below the 50-day moving average at $151 will invalidate the bullish view.

AMD stock price

AMD’s business is doing well but risks remain

Advanced Micro Devices’ stock price has surged in the past few months as the company’s fundamentals have improved due to the ongoing AI boom. 

The most recent results showed that the company’s revenue jumped by 32% to $7.7 billion. This growth happened even though its Chinese business came under pressure after the Trump ban. 

Its revenue growth was driven by Ryzen and EPYC chips, which are becoming popular among companies. AMD’s margins crashed, with the GAAP gross margin alling from 49% in Q2’24 to 40% in Q2’25, and the Non-GAAP falling from 53% to 43%. 

The gross margin crash was because of it inventory and other costs associated with the Chinese business. Excluding the charge, the non-GAAP metric would have been 54%.

AMD is slowly gaining market share in the data center business, where its sales rose to $3.2 billion, up by $400 million from the same quarter last year. The revenue growth would have been higher had Trump not banned its chips from China.

As a result, the AMD stock price has jumped after Trump allowed it and NVIDIA to ship these products to China. However, the agreement came with strings attached as it will pay the US government a 15% tax on Chinese profits. 

At the same time, it is unclear whether China needs its chips. Government officials recommended that its manufacturers should consider Chinese chips as it continues to decouple from the US. 

The results also showed that its client and gaming division made $3.6 billion, up from $2.1 billion. This growth was primarily driven by its Threadripper 9000WX and Threadripper PRO 900X series.

The embedded segment continued its deterioration, with its revenue falling from $0.9 billion to $0.8 billion. 

Analysts are largely muted on the company as they assess its performance. The average AMD stock price forecast is $183, slightly lower than the current $184, a sign that analysts believe that it is fairly valued.

Read more: Nvidia, AMD stock plunge after revenue sharing deal with US, but analysts eye opportunity

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