AMD poised for recovery amid volatility driven by valuation Advanced Micro Devices, Inc.BATS:AMDCrowdWisdomTradingCurrent Price: $233.54 Direction: LONG Confidence Level: 60% (Moderate confidence due to mixed signals but evidence of recovery potential from recent volatility) Targets: - T1 = $242 - T2 = $250 Stop Levels: - S1 = $228 - S2 = $220 **Wisdom of Professional Traders:** Analyzing insights from professional traders reveals critical setups for Advanced Micro Devices, Inc. (AMD). Traders are emphasizing AMD's recovery potential following an "ugly post-earnings week," supported by bullish technical setups such as potential rebounds to $242 and $244 levels as noted in multiple analyses. Confidence in trend reversal remains moderate due to valuation concerns, but AMD's AI-related growth opportunities and recent deals signal a long-term positive outlook. **Key Insights:** The primary factor driving AMD's recent performance relates to valuation concerns following significant gains ahead of earnings, coupled with post-earnings downside. Despite reporting strong top-and-bottom line beats and announcing promising deals with OpenAI and Oracle, traders highlight that revenue from these pivotal partnerships won't materialize until 2026, leaving AMD vulnerable to short-term profit-taking. In the medium term, AMD shows strong potential for growth in AI infrastructure and AI accelerator demand. Several traders have noted its appeal as an alternative to Nvidia as this market expands. Moreover, technical traders are closely monitoring $242-$244 as potential rebound points this week. Another major concern is China's recent ban on Nvidia, AMD, and Intel AI chips in state-funded data centers, which increases global uncertainty for major semiconductor players. However, professional traders argue AMD's broader business fundamentals coupled with future AI expansion should outweigh these geopolitical risks. **Recent Performance:** In the past week, AMD saw sharp declines, dropping 11.65% alongside broader semiconductor weakness pressured by valuation concerns. Despite this, AMD's ability to maintain prices above its $220 support level has traders cautiously optimistic about short-term upside movement. Recent earnings volatility has left AMD trading below several key moving averages, signaling nervousness among investors. **Expert Analysis:** Several traders mentioned AMD's potential recovery in the $242-$244 range, with attention on resistance levels at $244 and support levels near $228. Technical signals, such as the rebound possibility highlighted by several traders, and its role in AI infrastructure development are seen as positive drivers. Despite short-term weakness caused by stretched valuations, AMD's long-term appeal in CPUs and AI accelerator markets, combined with its resilience against broader market uncertainty, positions it as a stock to watch closely. Nevertheless, profit-taking and a cautious market environment could cap potential gains beyond the $250 level due to its elevated valuation, making its long-term growth prospects especially critical to monitor. **News Impact:** China's recent ban on AMD's AI chips in state-funded data centers adds pressure on the stock, raising concerns about regulatory headwinds and geopolitics. This has compounded the selling pressure post-earnings. However, AMD's recent strategic moves like its OpenAI deal provide a bullish counterbalance, suggesting AMD could capitalize on substantial AI demand. Moreover, broader concerns about U.S. Treasury yields and the Federal Reserve's rate path continue to weigh on tech sentiment generally, contributing to AMD's near-term volatility. Traders should watch developments around these macro factors for their impact on AMD’s recovery prospects. **Trading Recommendation:** Given AMD's sharp drop post-earnings but retention of key support levels at $220, coupled with trader consensus around $242-$244 as a likely recovery zone, this setup presents a moderately confident LONG opportunity. Enter near current levels with a focus on resistance at $242 (T1) and longer target growth toward $250 (T2). Stop losses should be placed conservatively under $228 and $220 given recent volatility. Do you want to save hours every week? Register for the free daily update in your language!