Advanced Micro Devices, Inc. (NASDAQ:AMD) stock fell more than 7% in Tuesday’s premarket session as investors pulled back from high-growth technology stocks amid a broader risk-off move.
Nasdaq futures were down 2.99%, while S&P 500 futures lost 1.37%, weighing on semiconductor stocks after a strong rally.
After gaining more than 325% over the past 12 months, AMD has been one of the market’s strongest performers. That makes the stock more vulnerable when investors reduce exposure to high-valuation technology names.
The broader market also reflected a defensive tone. Dow futures fell 0.43%, while Russell 2000 futures dropped 1.67% before the opening bell.
Technical Analysis
Despite Tuesday’s decline, AMD remains in a longer-term uptrend.
The stock is trading about 0.5% above its 20-day simple moving average of $506.96 and roughly 22.1% above its 50-day simple moving average of $417.35. That suggests the broader trend remains positive, although the wide gap above longer-term support could leave room for increased volatility.
Momentum has weakened, however. The moving average convergence divergence (MACD) indicator remains below its signal line, while the histogram is negative. This suggests bullish momentum has slowed. In simple terms, the recent uptrend is losing strength unless buyers regain control.
AMD set both its recent swing high and its 52-week high in June at $562.99. Traders will now watch whether the current pullback proves to be a healthy reset or develops into a deeper correction.
Key resistance stands near $546.50, while key support is around $437.00, close to the 50-day moving average.
Earnings And Analyst Outlook
The company’s next earnings report is expected on Aug. 4.
Wall Street expects 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.
AMD trades at a price-to-earnings ratio of 183.9, reflecting investors’ expectations for strong future growth.
The stock carries a consensus Buy rating with an average analyst price forecast of $490.07. Recent analyst actions include:
- Citigroup upgraded the stock to Buy and raised its price forecast to $575 on June 12.
- BofA Securities maintained its Buy rating and increased its price forecast to $560 on June 11.
- Barclays maintained its Overweight rating and raised its price forecast to $665 on June 1.
Benzinga Edge Rankings
AMD continues to score highly on Benzinga Edge despite the premarket weakness.
The stock has a Momentum score of 98.69, a Quality score of 95.73, and a Growth score of 96.90. However, its Value score remains low at 3.08, indicating investors are paying a significant premium for future growth.
The combination suggests AMD remains a strong momentum stock, but its premium valuation could lead to sharper pullbacks if market sentiment deteriorates.
ETF Exposure
AMD is a major holding in several technology-focused exchange-traded funds, including:
- iShares Semiconductor ETF (NASDAQ:SOXX): 8.03% weighting.
- ARK Next Generation Internet ETF (NYSE:ARKW): 7.37% weighting.
- Dan Ives Wedbush AI Revolution ETF (NYSE:IVES): 7.19% weighting.
Large inflows or outflows from these ETFs can result in automatic buying or selling of AMD shares.
Price Action
AMD Stock Price Activity: Advanced Micro Devices shares were down 7.16% at $512.12 during premarket trading on Tuesday, according to Benzinga Pro data.
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