The Advanced Micro Devices (NASDAQ: AMD) stock price rose by more than 2.5% on Friday as tech stocks made a comeback. The stock is trading at $105.25, which is about 5.85% above the lowest level last week. Still, it is about 36.50% below the highest level in 2021.
AMD earnings preview
AMD is one of the fastest-growing semiconductor companies in the world. The company has quickly grown from a small struggling semi company to a firm with a total market capitalization of over $127 billion.
Most of AMD’s growth has been organic since the company has not made any major acquisitions before. Its most significant acquisition was Xilinx, a company that manufactures Field Programmable Gate Array (FPGA). These are chips that are manufactured so that they can be configured by customers. Still, the acquisition has not been closed yet.
The AMD stock price recent decline mirrors that of other semi stocks. For example, the Nvidia stock price has crashed by over 24% in the past 30 days. Similarly, the Intel stock has tumbled by about 8% in the past month.
The next key catalyst for the AMD stock price will be the company’s quarterly results that will come out on Tuesday this week.
Analysts expect that the company’s business did well in the fourth quarter. In its recent guidance, the company said that it expects that its revenue reached $4.5 billion in the quarter. If that happens, it will be a 39% year-on-year increase, which will be attributed to the strong performance across sectors. For example, its EPYC processors are expected to have done well.
On the other hand, data compiled by Zacks is that AMD made $4.52 billion in Q4 or 39.4%. Historically, AMD tends to outperform analysts’ forecasts.
AMD stock price forecast
The daily chart shows that the AMD stock price has been under intense pressure in the past few months. The stock has managed to decline below the 61.8% Fibonacci retracement level. It has also moved below the 25-day and 50-day exponential moving averages while the MACD has moved slightly below the neutral level. The Relative Strength Index (RSI) has also declined below the oversold level.
Therefore, there is a likelihood that the AMD share price will bounce back after its earnings report on Tuesday. If this happens, it will likely retest the key resistance at $120, which is along the 50% retracement level.