Meta stock: AI partnership news drives upward move despite ongoing technical resistance

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Meta gains 0.91% today near $654

Highlights

Meta announced a landmark deal to purchase up to $100 billion in AI chips from AMD and may acquire up to a 10% stake in AMD.
Meta discontinued its Olympus AI accelerator project, further entrenching Nvidia and AMD as its main AI infrastructure suppliers amid ongoing AI and metaverse investment.
META ($653.56) is trading below key moving averages, with probable sideways movement ($635.00–$665.00 range) and less than 20% chance of a price increase.

AI investments accelerate as Meta shifts chip procurement strategy

Meta has recently announced a major deal to purchase AI chips from Advanced Micro Devices (AMD) worth up to $100 billion, including an option to acquire up to a 10% stake in AMD. The company has also discontinued its second-generation Olympus AI accelerator project, which could further solidify the roles of Nvidia and AMD as primary suppliers in Meta's AI infrastructure. These developments reflect Meta's ongoing investments in artificial intelligence and the metaverse, with continued focus on expanding its technology partnerships.

Intraday rebound diverges from weak momentum and resistance signals

Technically, META’s price sits beneath all major moving averages, while the Ichimoku Kijun level at $686.08 acts as immediate resistance. The MACD and ADX point to weak or negative daily momentum, while the RSI is neutral at 49.77 and the Commodity Channel Index hovers close to neutral, indicating no strong directional bias. Both the Stochastic RSI and Bull/Bear Power highlight brief intraday overbought conditions and buyer dominance, creating a divergence between overbought oscillators and lackluster momentum signals. The session began with a gap down, but a rebound has lifted the price near today’s range highs amid moderate intraday volatility.

Sideways bias favored with breakout risk tied to momentum shifts

For the coming week, META is expected to trade within a typical volatility band of $635.00 – $665.00. The likelihood of an upward breakout is low (less than 20%), with a higher chance that price action stays sideways within this corridor. Additional downside is favored unless momentum meaningfully improves, with a bearish scenario unfolding below $635.00 and a bullish trigger contingent on a close above $665.00.

Viktoras Karapetjanc, expert at Traders Union, sees Meta’s ongoing AI investments and strategic partnerships as a strong fundamental tailwind, though the stock’s technical setup remains weak. He believes macro and sentiment factors favor a constructive bias, provided Meta holds above key support. However, the current lack of momentum keeps price action range-bound for now. Any bullish scenario depends on a sustained close above $665.00. "Fundamentals are firm, but I want to see real technical strength before backing a breakout here."

Previously it was reported that Meta Platforms Inc. continues to trade below key moving averages, with technical indicators such as MACD, RSI, and ADX confirming persistent bearish momentum and intraday seller dominance. The price remains under resistance at the Ichimoku Kijun and within a projected $630–$665 consolidation range, with the probability of an upside breakout remaining low unless momentum reverses.

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.