After a bumper start to the year riding Wall Street’s artificial intelligence (AI) wave, shares in chipmaker AMD (AMD) have slumped as investors question the company’s ability to capture a greater share of the booming AI chip market from tech behemoth Nvidia (NVDA).
AMD shares gained 4.2% on Tuesday to close at $164.31, but they’re down 28% from their March high.
Below, we take a closer look at the AMD chart using technical analysis and point out key chart levels to watch out for.
Longer-term, AMD shares have trended mostly higher since the 50-day moving average (MA) crossed above the 200-day MA in March last year to generate a bullish golden cross buy signal. However, the stock fell out of favor with investors between March and early May this year, slumping as much as 38% over that period from its record high.
More recently, the shares have consolidated within a symmetrical triangle, a chart pattern …