AMD Shares Soared After News of a Server Manufacturer Acquisition
FXOpen
Yesterday, it was announced that Analog Micro Devices (AMD) intends to acquire ZT Systems, a manufacturer of equipment for data centres, cloud computing, and artificial intelligence. The market responded positively, with investors believing this move could help AMD reduce Nvidia's substantial market share.
As shown by the AMD stock chart, the price jumped by 4.5% yesterday. What’s next?
On 30 July, we highlighted the support block formed by the $135 level and the long-term upward trendline (shown in yellow). Bears managed to push the price below this block during the overall market decline on 5 August, but only briefly.
Technical analysis of AMD’s stock chart today indicates that the price has firmly risen above this support block.
Moreover, the bulls demonstrated their ability to break through the median line of the descending channel (shown in red). This could suggest that the dominance bears have held since March 2024 is weakening.
Looking ahead, this may lead to a test of resistance at the upper boundary of the descending channel. This resistance is strengthened by a bearish gap above the $170 level.
According to forecasts from 30 Wall Street analysts surveyed by TipRanks, 24 recommend buying AMD shares. On average, they predict AMD’s price will reach $189.48 (about +22% from current levels) within the next 12 months. However, after evaluating the impact of the ZT Systems acquisition, these price forecasts may be revised upwards.
Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
FTSE 100 Analysis: Strong BAE Systems Earnings Support the Index Rally Near Record Highs
On 30 July, BAE Systems released its first-half 2026 results: sales increased by 9% to £15.8 billion, underlying operating profit rose by 11% to £1.7 billion, and underlying earnings per share climbed 13% to 38.9 pence. The
Euro and Pound Hold Gains as Markets Assess the US Employment Outlook
The euro and the pound continue to trade higher against the US dollar following last week's Federal Reserve meeting. As widely expected, the Fed left interest rates unchanged and reiterated that future monetary policy decisions would depend on incoming economic
USD/JPY and USD/CAD Consolidate Ahead of ADP Employment Report
Following last week’s sharp decline, the US dollar has entered a consolidation phase against most major currencies. At the same time, some instruments, including USD/JPY, are showing a moderate recovery as markets await fresh macroeconomic signals. Today’s