Advanced Micro Devices (NASDAQ: AMD) is at risk of a substantial correction potentially targeting $335, according to an analysis presented by TradingView. The report highlights the daily 50-day moving average (MA50) as a crucial support level that, if breached, could signal a decline toward the 200-day moving average (MA200), expected near $335 around August 11, 2026.
AMD has demonstrated remarkable growth within the semiconductor sector in 2026, achieving over 150% gains and trading at $557, following a peak above $560. Despite this positive performance, the analysis draws attention to a concerning bearish divergence in the Relative Strength Index (RSI), which has shown lower highs since late April. This trend typically suggests an erosion of bullish momentum, even as prices continue to rise. A similar situation transpired following AMD's rally in late 2025, where a declining RSI preceded a drop below the MA50, leading to a prolonged corrective phase.
This current market positioning comes on the heels of a significant rise of around 213% from the lows of March 2026, a striking increase compared to 248% during the previous rally. Experts note that while the MA50 remains a pivotal watchpoint, AMD has managed to stay above this trend line through several market pullbacks. Nevertheless, a definitive breakdown here could open the door for a deeper price retracement toward the MA200.
Despite the technical challenges, AMD continues to showcase robust business fundamentals. The company reported a first-quarter revenue of $10.3 billion, marking a 38% year-over-year increase. Notably, data center revenue surged 57% to a record $5.8 billion, fueled largely by demand for EPYC server processors and AI accelerators. Looking ahead, AMD expects approximately $11.2 billion in second-quarter revenue, with earnings scheduled for August 4, a timing that could serve as a catalyst in validating or refuting the bearish outlook.
This article is informational and should not be considered financial advice.
