AMD Stock Rebound After 20% Fall With Oracle’s Cloud Forecast Boosting Chipmakers
This week, Advanced Micro Devices (NASDAQ: AMD) is rebounding ground as confidence about AI and Oracle's optimistic cloud projections...
Quick overview
- AMD's stock is recovering this week due to renewed AI optimism and Oracle's positive cloud forecasts.
- After a three-month surge, AMD faced a significant drop in August, losing 20% in under a month.
- Oracle's bullish long-term guidance has positively impacted AMD's stock, which rose 5.5% this week.
- Concerns about competitive pressures and leadership changes continue to create uncertainty for AMD's future growth.
This week, Advanced Micro Devices (NASDAQ: AMD) is rebounding ground as confidence about AI and Oracle’s optimistic cloud projections boost semiconductor stock prices.
Recent Slowdown After Strong Rally
AMD’s stock had been on a three-month surge, nearly reaching all-time highs before momentum faded in mid-August. A mix of competitive pressures, leadership shifts, and technical breakdowns reignited investor caution. Shares dropped below key moving averages, sliding to $150.80 last week—a 10% weekly loss and 20% drop in under a month.
AMD Chart Daily – Climbing Above the 50 SMMA Again
Oracle’s Cloud Forecast Sparks Recovery
This week, sentiment turned positive after Oracle released bullish long-term guidance despite missing near-term revenue and earnings estimates. The company projected cloud revenue growth accelerating to $32 billion, $73 billion, $114 billion, and eventually $144 billion over the next four years. Where is all this money coming from, because there’s not much demand from the public?
Oracle’s outlook not only sent its own stock soaring but also lifted chipmakers, helping AMD rise 5.5% this week, even though shares still closed under $160 after Wednesday’s highs.
Competitive and Industry Pressures
AMD continues to face tough comparisons with Broadcom (NASDAQ: AVGO), which recently posted record Q3 results and signaled strong demand for AI infrastructure. Broadcom’s strength has raised doubts about AMD’s competitive edge in the data center segment, a key driver for future growth.
At the same time, reports that Alibaba is developing its own AI chip amplified fears of growing price competition. Investors worry this trend could pressure AMD’s margins, echoing the cost squeezes seen in the software sector during earlier waves of disruptive AI innovation.
Leadership Change Adds to Investor Concerns
Adding to the uncertainty, AMD announced the departure of Chief Accounting Officer and Corporate VP Philip Carter, who is leaving to take a CFO role elsewhere. While described as an amicable move, the timing unsettled investors already concerned about execution risks in an increasingly competitive environment.
Outlook: Despite short-term volatility, AMD remains in focus as a central player in the AI semiconductor race. If Oracle’s bullish projections signal broader demand strength, AMD could regain momentum—but its ability to navigate competition, protect margins, and deliver consistent execution will be decisive for its next leg higher.
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