Advanced Micro Devices Inc. (AMD) shares fell nearly 3% in premarket trading Friday as investors pulled back from high-growth technology stocks amid a broader risk-off move in equity futures.

Nasdaq futures declined 0.94%, while S&P 500 futures slipped 0.36%. AMD shares were down 2.89% at $508.10 before the opening bell, according to market data.

Premarket Weakness Follows Strong Rally

The decline appeared tied to broader market sentiment rather than company-specific news. After a sharp multimonth rally, AMD has become more vulnerable to profit-taking as investors reduce exposure to higher-beta technology stocks.

The pullback comes just days after Barclays raised its price forecast on AMD to $665 from $500 and reiterated its Overweight rating. Analyst Tom O'Malley said the emergence of agentic AI could significantly increase demand for server CPUs alongside GPUs, as increasingly complex AI workloads require greater processing power. O'Malley added that AMD is well-positioned to capitalize on the trend, with the server CPU market potentially approaching $200 billion by 2030.

Technical Indicators Suggest Cooling Momentum

Despite Friday's decline, AMD remains in a strong long-term uptrend. The stock is trading about 8% above its 20-day simple moving average of $471.04 and roughly 108% above its 200-day moving average of $244.47.

However, momentum indicators suggest the recent advance may have become stretched. AMD's relative strength index stands at 70.63, a level commonly associated with overbought conditions and increased potential for near-term consolidation.

The broader trend remains positive. The 20-day moving average remains above the 50-day moving average, while the 50-day moving average continues to hold above the 200-day moving average following a golden cross recorded in July 2025.

Key resistance remains at the stock's 52-week high of $546.44. Initial support is near the 20-day moving average at $471.04.

Earnings Outlook

Wall Street expects AMD to report second-quarter results on or around Aug. 4. Analysts forecast earnings of $1.55 per share, up from 48 cents a year earlier, on revenue of $11.28 billion compared with $7.68 billion in the prior-year period.

The stock carries a consensus Buy rating. Recent analyst actions include Barclays raising its price forecast to $665, while TD Cowen increased its forecast to $600, and Mizuho lifted its forecast to $615.

Price Action

AMD shares were down 2.89% at $508.10 during premarket trading on Friday, according to market data.