AI hardware shift and technical weakness

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Meta slides 1.33% today to $648.28

Highlights

Meta finalized a $60 billion AI chip sale and converted the deal into a long-term equity stake in Advanced Micro Devices, deepening its AI hardware strategy.
This investment marks a strategic shift for Meta, directly aligning it with AMD for AI development despite ongoing selling pressure on its shares.
META trades at $648.28, below key moving averages (MA-20 $662.00, MA-50 $656.74, MA-200 $691.30), with bearish momentum and a likely short-term range of $630–$665.

AI hardware strategy shifts as Meta invests via AMD equity stake

Meta completed a $60 billion sale of AI chips and converted the transaction into a long-term equity stake in Advanced Micro Devices, adjusting its artificial intelligence strategy. This shift marks a direct strategic investment by Meta in AI hardware and partnership development. The new arrangement was established as part of the company’s corporate activities, though price action has remained under broader selling pressure.

Bearish momentum persists as technical indicators favor sellers

Technical signals for META remain bearish. Prices are below all key moving averages, with the Ichimoku Kijun at $685.28 acting as the nearest resistance. Momentum indicators favor sellers: MACD shows a persistent sell bias on both daily and weekly timeframes, and ADX values (10.58 daily, 13.44 weekly) confirm a weak, undecisive trend. RSI and Commodity Channel Index are below neutral and show sell signals, while Stochastic RSI points to mild oversold conditions. Bull/Bear Power demonstrates intraday seller dominance. The session opened with a downside gap from $657.01 to $644.35, and while the latest price is near the session high, the overall tone remains negative despite a minor bounce off the lows.

Further declines likely as upside probability remains subdued

For the coming week, the expected price band is $630 to $665, reflecting a typical volatility range relative to current levels. The probability of an upward move is very low (less than 20%), so further declines are more likely. The baseline outlook is for consolidation between $630 and $665, with a bullish breakout above $665 requiring a reversal in momentum and a test of immediate resistance. A breakdown below $630 could accelerate declines toward additional support levels defined by the moving averages, keeping the technical forecast defensive unless sentiment shifts.

Viktoras Karapetjanc, analyst at Traders Union, notes that Meta’s strategic equity stake in AI hardware signals long-term strength, but price action stays under pressure. He sees the technical outlook as defensive, with bearish momentum still in control despite recent corporate developments. The probability of a sustained rebound remains low unless sentiment and momentum reverse. 'Meta’s fundamentals and AI vision are promising, so I favor patience and will watch for a shift above $665 as a bullish signal,' he says.

Last time, analysts noted that Meta Platforms Inc. was experiencing sustained bearish momentum, with the stock trading below its 20-, 50-, and 200-day moving averages, signaling persistent short- to mid-term selling pressure while long-term support held higher. Technical indicators including MACD and ADX reflected weak momentum and a lack of clear trend, with nearby resistance near the MA-50 and dynamic resistance identified by Ichimoku, as sellers continued to dominate despite mixed signals from short-term oscillators.

Source of Data: META 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.