Advanced Micro Devices: The Bears Are Trying, But…

Advanced Micro Devices was the top-performing member of the S&P 500 in both 2018 and 2019. Its last earnings report on April 28 was very middle-of-the-road. Results beat, and then management tried to talk down demand. Other chips like Intel and Qualcomm have struck a similarly cautious tone.

However, investors know some positives lay in the future. They may see the bigger chip cycle (cloud, AI, 5G, mobile) resuming sooner rather than later, and not want to remain negative on a company that’s repeatedly shown leadership.

This sentiment may be evident on the chart because AMD has refused to make new lows after earnings.

The key level seems to be the April 21 close of $52.92. Remember that was a big negative session for the S&P 500, one day after oil went negative.

Buyers defended AMD during that volatile day. The stock actually had more volume on April 21 than yesterday, following quarterly results.

Let’s see if this price area continues to provide support. It also gives potential buyers a decent risk-management level in case the shares break to the downside.