AMD Shares Fall Despite Strong News

It emerged this week that the US government, together with Advanced Micro Devices (AMD), has launched the “Mission Genesis” initiative aimed at boosting national computing power through advanced supercomputing. The project is expected not only to significantly expand federal computational capacity but also to increase AMD’s revenue.

Nevertheless, AMD was among yesterday’s weakest performers. Market sentiment has been dampened by concerns over intensifying competition from Google. According to media reports:

→ Google’s TPU (Tensor Processing Unit) chips show strong potential for AI training.
→ Meta Platforms is already in talks to invest billions in Google’s chips for use in its data centres from 2027.

A decline of around 20% in AMD’s share price since the start of the month is worrying, yet the chart analysis offers some encouragement for the bulls.

Technical Analysis of AMD Shares

Price action suggests that since April, AMD has been trading within a broad upward channel (shown in blue). Within this structure:
→ the price set an all-time high at the end of October, where the upper boundary acted as resistance;
→ between 7 and 17 November, the median line held as support before eventually giving way;
→ today, AMD is testing the lower boundary of the channel, which may act as support.

Additional factors that could reinforce this lower-channel support include:
→ the psychological $200 level;
→ a wide bullish gap, with its upper boundary near $205.

Taking these elements into account, it is reasonable to assume that conditions may be favourable for the bulls to attempt to revive the broader 2025 uptrend.

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