AMD(AMD) Stock Soars on AI Chip Hype: Analysts Eye $175-$215 Breakout

AI chip frenzy sends AMD shares rocketing—again. Wall Street's latest shiny object obsession? Check. Another semiconductor stock riding the narrative wave? Obviously.

Price targets get a turbocharge

Analysts scramble to adjust models as the $175-$215 range becomes the new battleground. Because nothing fuels bullish revisions like FOMO and a few well-timed press releases.

The real question nobody's asking

When do we admit this 'AI everything' rally smells suspiciously like 2021's 'metaverse plays'? But hey—until the music stops, keep dancing. Just watch the exits.

TLDR

• AMD stock rose 1.57% as analysts said new chips could rival Nvidia’s AI offerings

• Shares broke out of a flag pattern, signaling bullish momentum supported by volume and RSI strength

• Key resistance levels lie at $175 and $215, while $135 and $115 serve as support zones

• AMD’s RS Rating jumped to 81, showing relative strength in the early stages of a potential move

• YTD return is 21.22%, though shares are still down 19.52% year-over-year

Advanced Micro Devices Inc. (NASDAQ: AMD) closed at $146.42 on Friday, gaining 1.57%, following bullish analyst commentary about the company’s latest artificial intelligence chips.

Advanced Micro Devices, Inc. (AMD)

Analysts at HSBC stated AMD’s new MI350 chips could compete with Nvidia’s Blackwell series, and its upcoming MI400 chips might match Nvidia’s next-gen Vera Rubin platform. The positive sentiment triggered a breakout from a bullish technical flag pattern, positioning the stock for potential continued gains.

BREAKING 🚨: $AMD Advanced Micro Devices shares are trading higher after HSBC upgraded the stock from Hold to Buy and announced a price target of $200.

— Stocknear (@stocknear) July 10, 2025

Breakout Signals Technical Strength

AMD’s chart shows it has been steadily rising since its April low. On Friday, it decisively broke out of a flag pattern with the highest trading volume in over a week. This breakout suggests continuation in its uptrend, backed by the convergence of the 50-day and 200-day moving averages, a setup that often precedes a bullish golden cross. The Relative Strength Index (RSI) remains below the overbought level, giving the stock room to climb further.

The breakout aligns with a growing belief that AMD can carve a stronger share of the AI chip market, which it has lagged in compared to Nvidia. The technical action gives bulls renewed confidence, although some caution is warranted as the stock is now considered extended and out of its recent buy range.

Overhead Resistance to Watch: $175 and $215

As AMD builds momentum, analysts point to two significant resistance levels that could act as profit-taking zones. The $175 mark corresponds to past peaks from May and October 2024 and serves as a classic technical barrier. If shares can break through this zone, the next major resistance lies at $215, just under AMD’s March 2024 high, which coincided with a notable shooting star candlestick reversal.

If these levels are breached, AMD could be entering the next leg of its rally, provided broader market sentiment and AI chip adoption trends remain favorable.

Support Zones Near $135 and $115

On the downside, $135 stands out as a near-term support level. This price aligns with the base of the recent flag pattern and corresponds to a prior horizontal support zone traced back to September. In the event of a deeper pullback, $115 may serve as a more robust floor, backed by a trendline touching multiple peaks and troughs throughout the year.

Investors eyeing entry points might wait for pullbacks to these levels, particularly if volume and broader tech momentum support reaccumulation.

AMD’s Relative Strength and Performance Metrics

AMD’s RS Rating recently climbed from 66 to 81, surpassing the critical 80 threshold. Historical patterns show top-performing stocks often display RS Ratings above 80 early in major advances. Though AMD is up 21.22% year-to-date, it remains down 19.52% over the past 12 months, reflecting the challenges of gaining traction in a market dominated by Nvidia.

While AMD isn’t currently in a technical buy zone, analysts suggest monitoring for consolidation patterns or tight-range setups that could offer follow-on opportunities. With upcoming chip releases and improving investor sentiment, the stock remains in focus for AI-driven growth.