AMD Stock Drops Amid Zen 6 Leak After 30% June Rally–Will Support Hold?

Quick overview

AMD shares are pulling back this week after a stellar June rally, as investors weigh chip competition, technical levels, and big buys from ARK Invest.

Strong June Rally Followed by Pullback

After a 30% surge in June, AMD (NASDAQ: AMD) shares entered July under renewed selling pressure. The stock climbed as high as $143.84 on Friday, capping an impressive short-term recovery from a steep Q1 correction that had left the chipmaker lagging peers like NVIDIA.

But the new week has seen investors hit the brakes. AMD fell on Monday while the broader US indices notched respectable gains, and selling continued into Tuesday with AMD trading around $136, down roughly 5% so far this week.

Zen 6 Leak Raises Competitive Questions

Part of the cautious tone stems from new leaks about AMD’s next-generation Zen 6 Ryzen processor. Reports suggest Zen 6 may feature 24 cores—significantly fewer than Intel’s rumored 52-core offering for the same segment.

While Zen 6 chips could still boast boost clocks over 7 GHz, analysts warn that lower core counts might limit AMD’s appeal in high-end workstation and data center markets—key battlegrounds in the broader AI and HPC race.

Technical Levels in Focus

From a chart perspective, AMD is approaching the 100-weekly simple moving average (SMA) (green), which has previously served as solid support. A bounce from this level is possible, given past behavior.

But if the 100-weekly SMA fails, the next major support area sits near $126, marked by the 50-week SMA (yellow). Traders will watch these levels closely for signs of a reversal or deeper correction.

ARK Invest Continues to Buy Aggressively

Despite the near-term pullback, Cathie Wood’s ARK Invest has been buying heavily. On Monday, ARK purchased more than 356,000 AMD shares across three of its ETFs—an estimated fresh investment of $51.24 million.

This follows last week’s addition of over 130,000 shares, making AMD now ARK’s 11th-largest holding across its ETF lineup. ARK’s aggressive buying underlines its conviction in AMD’s long-term potential, despite near-term volatility and competitive questions.

Conclusion: The latest price retreat doesn’t erase the strong bullish momentum that carried AMD through June, but it does highlight ongoing debates about its competitive positioning in the next wave of CPUs. With technical support levels in play and big institutional buyers like ARK doubling down, AMD remains a stock to watch as it navigates the balance between short-term correction and long-term growth story.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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