AMD Stock Analysis: More Upside or a Bigger Correction?

AI-generated source summary

The analysis focuses on Advanced Micro Devices (AMD) using monthly and weekly charts. The monthly chart shows a long-term upward trend that has been less predictable in recent years. The speaker notes that while earnings, business quality, and financial health are generally good, valuation is considered expensive. The price action on the monthly chart is analyzed using an Elliott Wave pattern, suggesting that the current wave 3 is progressing, with potential for further upward movement within a channel. Two breaks in 2022 and 2025 are noted but deemed debatable due to subsequent price recovery. The speaker suggests that a deeper correction might follow if the trend breaks, but currently, AMD is expected to continue higher. On the weekly chart, the analysis highlights the current price action within a range defined by volume profile. The upper boundary of this range is around $600, and the lower boundary is around $390. The speaker indicates that if AMD breaks below $390, it would invalidate the current bullish outlook and suggest a potential continuation lower. However, if AMD manages to break above $600 and hold there, it signals a continued bullish trend. The current price is $465.58, with a target of $770.00, and a fail bound of $390.00, suggesting a bullish prediction for the stock.

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