Advanced Micro Devices (NASDAQ: AMD) stock slide may not be over, but it is nearing its end and setting up the market for a solid rebound that could quickly add 30% to the stock price. Technically speaking, AMD’s market is profoundly oversold and overextended, with stochastic oscillators in the low-end range on the daily, weekly, and monthly charts. The oversold condition results from a sentiment reset that repriced the outlook for AI influence on the business from an NVIDIA-like near-term boom to a longer-term, more sustainable growth pace supported by strength in edge computing and data centers.
In early March, the market for AMD is trading near a critical support level that aligns with lows set in October 2023, when the AI bubble was first inflating. No AI premium is attached to the stock at this level, and AI's influence on the business is robust. The data center and client segments are growing at hyper-paces, supported by client wins and penetration gains that point to continued strength in 2025.
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