AMD Stock At $221: Bulls Vs. Bears On Knife's Edge

Core Viewpoint - Advanced Micro Devices Inc (AMD) reported a fourth-quarter earnings beat but experienced a significant stock decline, indicating that guidance and market sentiment are more critical than headline profits [1]. Stock Performance - AMD's stock is trading near $224.65, just above its 50-day moving average, with a critical support zone identified between $221 and $222 [2]. - A daily close below $221 would disrupt the cup-and-handle pattern that traders have been defending since late last year [3]. Technical Analysis - The technical indicators show that while the momentum is cooling, it is not collapsing; the RSI is at 44.5, indicating neutral territory, and the MACD at 5.89 shows fading but still positive momentum [4]. - The long-term trend remains above the 200-day moving average at $178, but AMD is significantly below its 8-day moving average at $244.75 and 20-day moving average at $234.15, suggesting that any price recovery may be short-lived [4]. Market Context - The recent selloff reflects a slowdown in data-center growth year over year, lagging demand from China, and an unfulfilled promise of a CPU surge, posing a credibility challenge for AMD's AI narrative [5]. - The next few trading sessions will be crucial in determining whether AMD maintains its status as an AI momentum stock or transitions into a "show-me" stock [6].