As the chart indicates, Advanced Micro Devices (AMD) reached its yearly low on 20th December, dropping below $120.

However, on Monday, AMD emerged as one of the top-performing stocks in the market. The trading session opened with a bullish gap, and by the close, the stock had gained approximately 4.5% compared to Friday's close. Meanwhile, the S&P 500 (US SPX 500 mini on FXOpen) rose by 0.7% on the same day.

According to technical analysis of the AMD stock chart, in 2024, the price formed a descending price channel (highlighted in red), characterised by the following:

• Bears broke below three trendlines, forming a structure reminiscent of Gann fans.
• The fourth (lowest) trendline could serve as a strong support level, preventing the price from reaching the bottom of the channel. The sharp upward reversal from the $120 level may be considered a sign supporting this scenario.

Price action suggests increasing demand, and analysts (as outlined below) believe buyers may play a more active role in 2025.

AMD Stock Price Forecast for 2025

In 2024, AMD underperformed the market. Amid the AI boom, Nvidia (NVDA) and Broadcom (AVGO) stocks reached all-time highs, while AMD's stock price dropped by about 12% since the beginning of 2024.

According to Yahoo Finance, the company’s strategic approach provides a rationale for investors to hold or buy AMD shares heading into 2025.

AMD has historically avoided introducing revolutionary products. Instead, the company enters established markets with alternative products that offer specific advantages.

This strategy could apply to the AI boom:

• 2024: AMD’s stock declines as the company adopts a wait-and-see approach, assessing the AI market's needs.
• 2025: AMD could benefit from the AI race, possibly through new processors in its EPYC series.

According to TipRanks:

• 22 out of 30 surveyed analysts recommend buying AMD shares.
• The average price target for AMD is $182 by the end of 2025, representing a 46% increase from current levels.
  

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