Technical analyst maps out the ‘massive buy' opportunity for AMD stock

Core Viewpoint - Advanced Micro Devices (AMD) has faced a challenging start to 2024, with an 18% decline in stock price year-to-date, despite reporting strong earnings and revenue growth in Q4 and FY 2024 [1][2] Financial Performance - AMD's data center revenue increased by 69% year-over-year to $3.86 billion, but it significantly lags behind Nvidia, which reported a 93% growth to $35.6 billion in the same segment [2] - Client revenue rose by 58% year-over-year, driven by demand for AMD Ryzen processors, while gaming revenue fell by 59% and embedded processor sales decreased by 13% [3] Market Sentiment - Despite the recent stock pullback, Wall Street analysts remain optimistic, viewing the current dip as a potential buying opportunity [4] - Technical analysts have identified a bullish setup for AMD, projecting a rebound towards $320 in the next uptrend [5] Technical Analysis - AMD's stock has been in a downtrend for one year, trading below its 200-week moving average, indicating a strong long-term buying opportunity [6][7] - The stock is currently hovering just above the 0.618 Fibonacci retracement level, with the 0.786 level slightly lower, suggesting potential for a price rebound [8] - The one-week RSI is nearing oversold levels, which historically aligns with significant reversal points, indicating a favorable risk-to-reward setup for investors [9]