It's a rough morning for Advanced Micro Devices (AMD) shareholders. The chipmaker's stock fell nearly 4% in Tuesday's premarket session, caught up in a broader tech sector selloff that dragged Nasdaq futures down 1.02% while S&P 500 futures slipped a more modest 0.19%.
The move looks like classic profit-taking. After a blistering rally over the past year, investors are trimming exposure to high-valuation names, and AMD—trading at roughly 184 times earnings—certainly qualifies. When the market gets cautious, stocks with premium price tags tend to swing harder.
But here's the interesting part: just days ago, CNBC's Jim Cramer argued that any weakness in AMD should be viewed as a buying opportunity. His reasoning? You rarely get chances to buy AMD on the cheap because the company offers both CPUs and GPUs, and demand for both remains strong. It's a rare two-for-one in a world where most chipmakers specialize.
What the Charts Say
Despite this morning's dip, AMD's longer-term trend is still firmly in bull territory. The stock is trading 2.2% above its 20-day simple moving average, 13.8% above its 50-day, 55.2% above its 100-day, and a whopping 89% above its 200-day SMA. The 20-day is above the 50-day, which is above the 200-day—the classic bullish alignment that's been in place since the golden cross in July 2025.
That said, short-term momentum has cooled. The MACD is below its signal line, and the histogram is negative, suggesting buying pressure has faded for now. Traders are watching resistance near $546.50, with initial support around $437 if selling accelerates.
Earnings and Analyst Love
AMD is set to report quarterly results on August 4, and expectations are high. Wall Street is looking for earnings of $1.55 per share—up sharply from 48 cents a year ago—on revenue of $11.28 billion, compared with $7.68 billion in the prior-year period.
Analysts remain bullish despite the pullback. The consensus rating is Buy, with an average price target of $505.38. Recent upgrades include:
- Goldman Sachs maintained a Buy and raised its target to $640 on July 6.
- Wells Fargo kept an Overweight rating and bumped its target to $615 on June 30.
- Cantor Fitzgerald reiterated Overweight and lifted its target to $700 on June 29.
Those targets suggest significant upside from Tuesday's premarket price of $529.50.
MarketDash Edge Rankings
MarketDash Edge gives AMD a Momentum score of 98.85, a Quality score of 95.65, and a Growth score of 96.77—all indicating a company firing on most cylinders. The Value score, however, is just 2.95, confirming the stock is expensive relative to peers. That premium valuation is a double-edged sword: it amplifies gains in good times but can lead to sharper drops when sentiment shifts.
ETF Exposure
AMD is a major holding in several key ETFs, which can amplify moves. It makes up about 8.03% of the iShares Semiconductor ETF (SOXX), 7.37% of the ARK Next Generation Internet ETF (ARKW), and 7.19% of the Dan Ives Wedbush AI Revolution ETF (IVES). Large inflows or outflows from these funds can create additional buying or selling pressure for AMD shares.
Price Action: AMD shares were down 4.08% at $529.50 in premarket trading Tuesday, according to market data.
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