AMD Stock Forecast: AI Revenue Surges 38%, but Shares Break Below $460 Support

AMD continues to build bullish momentum, particularly in its core business, but the stock remains under pressure as investors continue to closely watch the company’s fast-growing AI and data center computing business. Although AMD recently delivered its latest quarterly beat, the stock broke key levels, signaling that investors might be worried about the upcoming Q2 report that is due in early August.

AMD Delivered Another Record Quarter As Demand For EPYC And Instinct Products Rises

AMD delivered its latest quarterly beat in Q1 2026, and managed to generate its highest-ever sales and earnings. The company’s revenue reached $10.3 billion, up 38% year-over-year, while adjusted earnings per share rose to $1.37. Gross profit margin was also boosted by 55%, as the mix of its products improved, driven by strong sales of its data center chips.

Despite the impressive top- and bottom-line results, the Data Center segment emerged as the star of the quarter, generating record revenue of $5.8 billion, up 57% year over year. This growth was fueled by steady demand for AMD’s EPYC server processors and its Instinct MI350 AI GPUs, which are increasingly being deployed in hyperscale data centers by major cloud service providers and enterprises. The segment also saw a 57% increase in operating income to $1.6 billion, underscoring the company’s improving margins as it gains traction in the lucrative data center market. AMD ended Q1 2026 with a strong balance sheet, holding $12.3 billion in cash, cash equivalents, and short-term investments.

$AMD
🚨 AMD Challenges the AI ​​Chip Throne! MI450 + Cloud Giant Orders: The Next Semiconductor War Is Heating Up 🔥

🚨🔥 AMD Launches a New Offensive in the AI ​​Battlefield!

Nvidia has dominated the AI ​​chip market for years, but AMD is rapidly catching up:

⚡ MI450 AI GPU… pic.twitter.com/RhsR3nSZhr

— Braden Hunt (@FaithFueledMom) July 29, 2026

AI Outlook Continues To Be The Most Important Catalyst For AMD Ahead Of Q2 Report

AMD expects Q2 to deliver similarly strong performance, projecting sales of around $11.2 billion, up around 46% year over year at the midpoint. Adjusted gross profit is also expected to rise to around 56%. Going forward, AMD plans to expand its presence in the AI space, with its long-term strategy being anchored on developing a comprehensive set of solutions for AI. These include its EPYC CPUs, Instinct GPUs, networking solutions, and software tools.

In its recent Advancing AI event, AMD shared additional details on its upcoming Helios rack-scale architecture, which combines sixth-generation EPYC processors with next-generation AI accelerators. The company announced that production has started for the Helios platform, and larger scale deployments are expected during the second half of 2026 and into 2027.

Moreover, AMD also secured several large orders from cloud service providers for their planned AI infrastructure buildouts, which should further contribute to AI GPU demand going forward. Other segments, such as AMD’s embedded business, also reported signs of recovery, while its Ryzen AI business was highlighted as having a promising future in the new market of AI PCs.

AMD’s stock continues to trade below key levels and investors are worried about potential short-term headwinds. AMD has broken below its long-term uptrend line, marking a change in the market structure from a series of higher lows to lower lows, indicating a shift from bullish to bearish sentiment.

Additionally, the stock experienced a sharp decline, resulting in multiple long red candles, signifying heavy selling pressure. The drop has also taken the price below the 50-period EMA at $505.03 and the 200-period EMA at $487.49, turning these averages into resistance zones.

The RSI indicator is at 26, putting the stock in oversold territory. Although this might suggest a short-term bounce, bearish momentum could continue as oversold conditions can persist in strong downtrends. Resistance levels are located at $431.63, $460.55, $487.49 and $496.36. Support levels are at $420.46, $400.00 and $393.28.

Conclusion

Despite facing some short-term technical challenges, AMD’s underlying fundamentals remain robust, and the company continues to lead in the AI infrastructure space. AMD’s second-quarter report will be closely watched for any changes in management’s expectations, particularly regarding AI GPUs and the timeline for its Helios rollout.

From a technical standpoint, the short-term outlook is bearish. A breakout above $460.55 would negate the break below the uptrend line and signal a return to bullish momentum. Otherwise, rallies will face selling pressure, even though the long-term growth story remains intact.

ABOUT THE AUTHOR See More

Arslan Ali Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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