AMD Just Triggered a Signal Traders Can't Ignore

Advanced Micro Devices' (NASDAQ: AMD) price action provided a clear signal that it would move higher in 2025 when it broke fresh highs in July. The move to new highs took the market above a critical resistance point that had been in place for more than a year, setting it up to continue rallying as the year progresses.

The real question is how high the market can go now that fresh highs have been set and what will drive it there. The answer to the first question is based on both the technical setup and analyst sentiment trends. In contrast, the second includes results, forecasts, and, once again, analyst sentiment trends, along with a hint of FOMO. 

The stock price targets for Advanced Micro Devices are based on the movement that preceded the breakout, including near-term, short-term, and long-term targets. The near-term target is based on the near-term price movement, specifically the July rally, which is worth $10.

AMD’s stock price has already achieved this target, rising by $10 from the critical resistance point to hit 155 in mid-July. 

The short-term and long-term targets are more interesting. They are based on stock price movements, which began in April 2025 and October 2022. They are worth $90 and $55, respectively, representing substantial gains relative to the critical resistance. Those targets are near $200 and $235, worth 37% and 60% when reached. 

Analysts Drive AMD Market As AI Business Gains Traction

AMD’s stock price action is being driven by analysts lifting sentiment and price targets after a wait-and-see period. The hopes priced into AMD’s 2023/2024 stock price surge are now being realized, leaving the stock undervalued due to the 2024/2025 price correction, and the rebound will likely be robust.

The critical factor is that AMD’s acquisitions, technological advantages, and upcoming MI400 series have it well-positioned to deliver rack-scale AI semiconductor solutions at scale, provide AI infrastructure to hyperscalers globally, and begin taking a significant market share from NVIDIA (NASDAQ: NVDA). 

The analysts' sentiment trends are robust, leading into the FQ2 earnings report. They include a significant increase in coverage, up 30% in under 12 months to 38, firming sentiment with a strongly bullish bias, and an increasing price target.

The sentiment is pegged at a solid Moderate Buy; the bias is due to the high number of Buy and Strong Buy ratings, which account for 73% and 13% of the total, respectively.

The consensus price reported by MarketBeat lags the price action in mid-July but preceding 30 days, reflecting a shift in sentiment. Recent revisions have led it up 10% to the $200 to $270 range. 

Q2 Results Will Be a Catalyst for AMD’s Stock Price

Q2 results will likely be a catalyst for AMD’s stock price, given the strength seen in previous quarters and the return of China sales. The resumption of sales to China means that written-off inventory can be recognized, and sales and earnings guidance will likely be much stronger than the current forecast estimate.

The consensus is for a sequential decline, with year-over-year growth slowing to only 27%, which is unlikely given the current trends in the AI industry.

Institutional trends are another factor supporting this market, aligning with the forecast for a higher share price. They bought on balance in Q1 and Q2 2025 and have extended the trend into the first weeks of Q3, buying at a robust pace of nearly 3-to-1 on a dollar basis.

The takeaway is that positive sentiment trends, including analyst coverage, will likely continue through the year’s end.

The likelihood of strong performance and guidance also raises the possibility of FOMO, or the fear of missing out, which can lead to a rapid and self-sustaining influx of capital into this market. 

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The article "AMD Just Triggered a Signal Traders Can’t Ignore" first appeared on MarketBeat.