On August 15, we said, “Keep an eye on oversold shares of Advanced Micro Devices (SYM: AMD). Now at $130.18, AMD is technically over-extended on RSI, MACD and Williams’ %R. From here, we’d like to see an initial retest of $150.”
Today, AMD is up to $155.56. From here, if it can break through its 50-day and 100-day moving averages, it could refill its bearish gap at around $180 short term.
Helping, analysts at Edward Jones just initiated a buy rating on the AMD stock.
The analysts added that AMD’s acquisition of semiconductor firm Xilinx will help the company broaden out its slate of chip offerings and also tap into new markets, while it remains “in the early innings of cross-selling and integrating Xilinx and AMD products,” as quoted by CNBC.
AMD also just acquired ZT Systems for $4.9 billion in cash and stock. As noted by Reuters, “The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching horsepower. Stringing together the vast numbers of chips has meant the makeup of whole server systems has become increasingly important, which is why AMD is acquiring ZT Systems.”
