AMD Stock Price Forecast: AMD Holds Above Support as AI Deals Fuel Growth Outlook

AMD stock trades near $555 as AI demand, Meta and OpenAI partnerships, and Data Center growth support the outlook. See today’s AMD stock forecast and key price levels.

Advanced Micro Devices (NASDAQ: AMD) reached approximately $55, and is up over 150% this year through today. Analysts speculate AMD is on pace to rival NVIDIA, especially with the growing data infrastructure and committed contracts with Meta and OpenAI.

AMD’s market cap is closing in on $900 Billion, AMD stock is up over 150% in 2023, and the focus is now on getting results.

Why Is AMD Stock Rising?

AI is rapidly changing many industries, and AMD is growing with it. AMD’s most recent fiscal quarter showed record revenues of $10.25 Billion (a 38% increase YoY), and $5.78 Billion (growing 57% YoY) in revenue from Data Centers. Demand for AMD’s EPYC Processor and Instinct AI Accelerators help drive this Data Center revenue.

Continuing this positive Data Center revenue trend is in AMD’s near future as forecasts predict Q2 revenue to be approximately $11.2 Billion and a Gross Margin of 56%. This will be a positive change from previous margins as the focus and mix of products helps AMD’s margins improve while Association for Computing Machinery helps and speeds AMD’s investment in research and development of software and systems.

AMD stands to gain even more from recent reports that several more Chinese companies gained approval to buy advanced AI processors, opening a positive and new sales channel if conditions to export stay favorable.

AI Partnerships Strengthen Long-Term Growth

The advantage AMD has over its competitors is the large amount of customers in AMD’s AI industry.

Meta and OpenAI both plan to invest in six additional generations of AMD AI infrastructure, amounting to six gigawatts for each firm. These generations will include AMD’s MI450 Accelerators, sixth Generation EPYC processors, and AMD’s Helios Rack-scale Integrated Systems. Because of these projects, AMD will be able to better predict the demand of their customers.

The next of these milestones is the commercial launch of the MI400 series and the Helios Architecture. This will be a success if AMD can improve the hardware and the ROCm software and commercialize the integrated AI systems to compete with the full NVIDIA Stacked Systems.

AMD Stock Price Forecast: Key Levels to Watch

AMD stock is on a healthy upward trend after bouncing back from the $529.37-$537.95 support zone, which contains a convergence of the trendline and the 50-day EMA.

The stock is in an upward cycle of higher highs and higher lows. The 100-day EMA located at $477.63 has a strong positive slope and is reinforcing the positive outlook. The momentum is positive with the RSI at 56, and the stock still has room for an upward correction.

The next resistance is at $584.05. An upward breach of this level will likely move the stock upwards to $608.63 followed by $634.89.

In the absence of upward correction, a breach of the support at $537.95 will break the positive momentum, with the next support located at $501.54.

The advanced AI systems and the increasing demand for Data Centers have led to a positive outlook for AMD’s Systems.

Key Takeaways

• The AI projects launched by Meta and OpenAI will give AMD revenue in the upcoming years.

• Multi-year AI deployments from Meta and OpenAI provide significant long-term revenue visibility.

• AMD’s upcoming expansion period will likely be influenced by the MI450 platform and the Helios architecture.

• For future AMD stock movements, the expected resistance level is $584.05 and the anticipated support level is between $529 and $538.