Watch: AMD Stock Soars on Surpassing Earnings Forecasts Thanks to Booming Data Center Sales

Key Takeaways

• On Tuesday evening, AMD's stock price rose during extended trading sessions as the company reported first-quarter earnings that exceeded analysts' predictions, largely due to significant increases in data center revenues.
• The stock price has surged towards the top boundary of a declining channel and the 50-day moving average, which have both acted as key resistances on the chart since late March.
• Investors ought to keep an eye on significant support points for AMD’s chart at approximately $93 and $78, along with tracking key resistance zones close to $116 and $132.

Advanced Micro Devices ( AMD ) shares advanced during after-hours trading on Tuesday following the semiconductor company's strong earnings release. initial-quarter profits that exceeded analysts' forecasts .

The company’s data center segment saw sales jump by 57% in the quarter, which helped alleviate worries about a potential deceleration. AI spending amid uncertainty about what impact the Trump administration’s tariffs will have on global growth. However, the chipmaker cautioned that its results would be affected by charges of roughly $800 million related to strengthening export controls on chip sales to China .

Through Tuesday's close, AMD shares had gained 18% since the start of the year and risen nearly 30% from their April low, far outpacing the performance of the S&P 500 During these periods, the stock increased by 1.7%, reaching $100.32 during after-hours trading on Tuesday.

Next, we examine AMD’s chart more closely and apply technical analysis to identify major price levels that investors will likely be watching.

Descending Channel in Focus

AMD shares have trended lower within a descending channel since October last year, tagging the pattern’s upper and lower trendlines on multiple occasions since that time.

More recently, the stock has rallied toward the channel’s upper trendline and 50-day moving average , two key levels that offered substantial support on the chart during late March.

Meanwhile, the relative strength index (RSI) Has recently risen past the 50 mark before thechipmaker's earnings announcement, indicating strengtheningprice momentum.

Let’s highlight several key points support and resistance stages on AMD’s graph that could potentially be significant.

Key Support Levels to Monitor

The initial support level to monitor is around $93. This zone on the chart could offer assistance close to the significant low from October 2023, which coincides with a notable period. trading activities towards the close of last month.

A failure of bulls to defend this important technical level could see the shares drop to lower support at $78. Investors may seek buy-and-hold chances in this area close to the stock’s bear trap April low.

KeyResistanceLevelstoWatch

Upon an earnings-driven move higher, it’s worth eyeing the crucial $116 level. The shares may face selling pressure in this area near a horizontal line that connects the December 2023 retracement low with peaks that formed on the chart in February and March this year. It’s worth pointing out this level also sits at the 38.2% Fibonacci retracement level when using a grid from the peak in October down to the trough in April.

Finally, buying above this level could lead to a retest of overhead resistance around $132. Investors who have accumulated AMD shares at lower prices may decide to lock in profits in this region near last year’s notable August swing low and this year’s early-January countertrend high.

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As of the date this article was written, the author does not own any of the above securities.

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