Yesterday, following the close of the stock market, Advanced Micro Devices released a strong quarterly earnings report:
→ Earnings per share came in at $0.48 (roughly in line with forecasts);
→ Revenue reached $7.68 billion (versus expectations of $7.41 billion).
At the same time, CEO Lisa Su stated: “We’re well positioned to deliver significant growth in the second half.”
However, despite the solid performance and optimistic outlook, AMD shares declined in after-hours trading, falling below $165.
The decline in AMD’s share price following a strong report may be attributed to excessively high expectations and the stock's overbought condition ahead of the announcement.
Technical Analysis of the AMD Stock Chart
Since April 2025, price fluctuations have formed an ascending channel (highlighted in blue). In July:
→ the price broke above the upper boundary of this channel, moving sharply higher (marked in purple);
→ the RSI indicator remained above the 50 level throughout.
We can assume that investors were following the meteoric rise of Nvidia (NVDA) shares and were betting that the ongoing AI boom would enable AMD to deliver extraordinary results. However, these hopes were not fully realised — the classic case of "buy the rumour, sell the fact".
As a result, AMD shares may open today with a bearish gap. From a technical standpoint, this suggests that the price is returning to the limits of the blue ascending channel, where the midline and lower boundary may act as support levels. The psychological support level at $150 also appears significant.
This move may be interpreted as a correction — and once the excessive optimism accumulated in July dissipates, bulls may attempt to resume the upward trend, supported by fundamentally strong data.
