Advanced Micro Devices Inc. (AMD) shares bounced back in Wednesday's premarket session after getting hammered on Tuesday. The stock fell 7.30% the day before, but it looks like dip buyers saw an opportunity. As of premarket trading, AMD was up 2.49% at $519.92, riding a broader tech rally — Nasdaq futures gained 0.53%, and S&P 500 futures rose 0.09%.
The rebound puts the focus back on AMD's recent highs. Traders will be watching whether the stock can build enough momentum to challenge its June peak, which sits just above $558.
A Big AI Compute Deal With Rackspace
Helping the mood was a new AI infrastructure agreement between AMD and Rackspace Technology Inc. (Rackspace (RXT)). The two companies signed a definitive deal to deploy an initial 30 megawatts of AMD-powered AI compute across Rackspace's global data centers, with the rollout scheduled between late 2026 and 2028.
This formalizes a memorandum of understanding announced back in May. The deployment will combine AMD Instinct GPUs and EPYC CPUs to power Rackspace's governed Enterprise AI Cloud, which is designed for regulated industries like healthcare. The companies said they'll jointly pursue enterprise customers and accelerate the rollout of four AI offerings, including Enterprise AI Cloud and Inference as a Service, as businesses move from AI pilots to full-scale production.
Technical Picture: Uptrend Intact, But Momentum Cooling
Despite Tuesday's sharp decline, AMD's long-term uptrend remains solid. The stock trades 5.8% above its 20-day simple moving average of $492.45 and 30.5% above its 50-day SMA of $399.12. It's also 70.8% above its 100-day SMA of $305.04 and a whopping 102.3% above its 200-day SMA of $257.53.
But momentum has softened. The MACD is below its signal line with a negative histogram, suggesting buying enthusiasm has cooled. Unless buyers regain control, rallies might be more gradual from here. Immediate resistance sits near $546.50, just below the 52-week high of $558.37. On the downside, support is around $437.00, a level that has attracted buyers in the past.
So, AMD is still in a strong position, but the path back to recent highs may require some patience — or another catalyst like the Rackspace deal to reignite momentum.
