AMD stock increased by 1.58%, closing at $503.57 before its earnings report scheduled for August 4.
Microsoft announced plans to deploy AMD Helios Rackscale Solution to handle large-scale AI workloads on its Azure cloud platform.
The Helios system integrates AMD graphics and server processors with networking technologies and software services to enhance Azure's infrastructure.
Azure will also launch two new virtual machine series powered by AMD EPYC processors and expand the use of Pensando data processing units (DPUs) in its networking services.
AMD CEO Lisa Su highlighted the extended collaboration with Microsoft, emphasizing years of joint development on high-performance infrastructure and expanding AI solutions on Azure.
During the trading session, AMD shares ranged between $502.36 and $522.44, with premarket prices reaching approximately $524.28, continuing a rally from below $200 earlier this year.
Analysts anticipate strong revenue and earnings per share for AMD's second quarter, building on a positive first-quarter performance.
Despite the recent price gains, technical indicators present mixed signals: the Relative Strength Index (RSI) at 47.60 is below its moving average of 53.39, suggesting weaker buying momentum.
The negative directional indicator stands at 28.56, surpassing the positive indicator of 25.76. Maintaining the $500 level is key for AMD to keep its recent trading structure intact.
If AMD stock surpasses the $522 resistance, it could test highs near $540; conversely, a breakdown below $500 might weaken its short-term outlook.
This article is informational and not investment advice.
