AMD trades near $411.82 support as weak momentum weighs

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AMD drops 9.03% to $449.5 today

Highlights

AMD secured up to 2.5 GW of data center capacity in partnership with Core Scientific, reinforcing future AI infrastructure growth.
This strategic collaboration expands AMD's access to large-scale computing resources, enhancing its competitive position in AI hardware markets.
Technicals show bearish momentum, with AMD trading below key averages; projected range is $411.82 to $506.67, with further downside likely.

AI infrastructure expansion offset by persisting market selling

Advanced Micro Devices, Inc. announced a partnership with Core Scientific, Inc. to secure up to 2.5 gigawatts of data center capacity for future AI infrastructure, according to Marketscreener. This collaboration signifies an expansion of AMD’s access to large-scale computing resources, which may enhance its position in the competitive AI hardware sector. While the agreement is likely viewed as a strategic move for future growth in data-driven markets, price action has remained under broader selling pressure.

Persistent selling pressure as oversold signals persist below resistance

On the technical front, AMD is now trading below the MA-20 ($510.93) and MA-50 ($522.94) on the hourly chart, but remains above the MA-200 ($307.06) on the daily timeframe. The Ichimoku Kijun sits at $507.67, marking immediate resistance. Momentum indicators are negative, as both MACD and ADX point to selling pressure, while RSI at 26.6, Stoch RSI, and CCI all confirm oversold conditions. Bull/Bear Power signals persistent selling dominance intraday, and the Awesome Oscillator is currently neutral, leaving the overall bias aligned with strong downside momentum.

Sideways consolidation likely with volatility around key support levels

Over the next two to three trading days, AMD is expected to trade within a forecast range of $411.82 to $506.67, reflecting a volatility band relative to recent levels. The baseline scenario calls for price to consolidate sideways inside this corridor. A bullish breakout above immediate resistance at $507.67 could trigger a technical rebound, while a break and close below $411.82 would confirm further downside and extend the downtrend.

Viktoras Karapetjanc, expert at Traders Union, sees AMD’s partnership with Core Scientific as a strategic step to capture future growth in the AI sector. He believes that despite the recent selling pressure and negative momentum, this infrastructure agreement supports a constructive long-term view. Near-term consolidation is likely, but a bullish rebound could materialize if resistance at $507.67 is cleared. "The fundamentals remain promising, and I would look for signs of recovery as market sentiment stabilizes around this news."

Previously it was reported that AMD was experiencing sustained technical weakness and heightened downside risks amid ongoing selling pressure. The latest decline, coupled with oversold momentum signals, reinforces a cautious outlook, positioning the $507.67 resistance as a critical threshold for any potential rebound in the near term.

Source of Data: AMD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.