Advanced Micro Devices Bounces After Flirting With Key Support Level
Semiconductor stocks have been among the hardest hit in the most recent selloff. During the month of October, the iShares PHLX Semiconductor ETF (Nasdaq: SOXX) fell 11.94% and was down over 16.5% before it rallied in the final two days of the month. For comparative purposes, the Invesco QQQ Trust (Nasdaq: QQQ) fell 8.6% in October and was down 12.14% before the bounce.
One chip stock that got hit extremely hard during the month was Advanced Micro Devices (Nasdaq: AMD). The stock fell over 41% in the month of October and it saw six straight weeks of losses from mid-September through last week. The stock is bouncing back this week.
Looking at the weekly chart we can see that the stock peaked at $15.55 in February 2017 and at $15.65 in July 2017. Those two highs are represented by the blue line on the chart. We also see that the 52-week moving average is at $15.71, providing a second layer of support in the area.
AMD dipped to a low of $16.17 earlier this week and has since bounced back sharply. As I write this, the stock has jumped almost 22% from its low on Tuesday. The proximity to the two support levels could be helping the stock bounce back.
AMD has decent fundamental numbers, but there are other chip companies with better fundamentals that haven’t bounced nearly as much. AMD could be getting a boost from a sentiment shift, as analysts were somewhat bearish toward the stock with only 11 of the 31 analysts following the company rating it as a “buy”.
In addition to pessimism from analysts, option traders are showing a certain degree of pessimism as well. The put/call ratio is at 0.904, which is above the normal range, and it has been trending higher over the last few months. The unwinding of the negative sentiment could be adding to the buying pressure.
Aroon Indicator for AMD shows an upward move is likely
AMD's Aroon Indicator triggered a bullish signal on July 09, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 202 similar instances where the Aroon Indicator showed a similar pattern. In of the 202 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMD advanced for three days, in of 294 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMD moved out of overbought territory on July 01, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 58 cases where AMD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on AMD as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMD turned negative on July 07, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMD broke above its upper Bollinger Band on June 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.039) is normal, around the industry mean (9.434). P/E Ratio (105.226) is within average values for comparable stocks, (63.871). Projected Growth (PEG Ratio) (0.787) is also within normal values, averaging (2.352). AMD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (8.489) is also within normal values, averaging (36.027).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a manufacturer of integrated circuits for semiconductors
Industry Semiconductors
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