AMD Stock Popped After Analyst Said New AI Chips Could Take On Nvidia’s—Watch These Key Price Levels

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Advanced Micro Devices (AMD) stock jumped after HSBC analysts argued that the company’s newest AI accelerators can compete directly with Nvidia’s. The move came with a technical breakout on the chart, and that breakout puts four price levels in focus: possible resistance near $175 and $215, and possible support near $135 and $115.

What the Analysts Said

HSBC’s argument had two parts. First, AMD’s MI350 series chips are comparable with Nvidia’s current Blackwell chips. Second, the next-generation MI400 chips, scheduled for release the following year, could compete with Nvidia’s Vera Rubin platform, the successor to Blackwell.

The note mattered because AMD had trailed Nvidia badly over the prior 12 months. The gap came largely from AMD’s inability to win a bigger share of the fast-growing market for AI data center chips. Any credible sign that AMD’s products can match Nvidia’s on performance speaks directly to that weakness. For the other side of the rivalry, see Nvidia’s latest earnings results and NVDA stock reaction.

The Flag Pattern Breakout

After bottoming in early April, AMD shares climbed in an orderly uptrend. Within that advance the price formed a flag: a short, tight consolidation that drifts sideways or slightly lower after a sharp rise (the “pole”). Chart traders read a flag as a pause rather than a reversal. When price breaks above the flag’s upper boundary, they treat it as a sign the prior trend may continue.

AMD broke out of its flag on the day of the HSBC note, on its heaviest volume in a little over a week. Volume matters here because a breakout on thin trading is easier to reverse. Two other indicators supported the bullish reading:

• Moving averages: The 50-day moving average was rising toward the 200-day moving average. A move of the 50-day above the 200-day is known as a golden cross, a widely followed signal of improving longer-term trend.
• Relative strength index (RSI): The RSI sat just below its overbought threshold, which is conventionally 70. That reading confirms strong momentum. It also means the stock had limited room before momentum traders would consider it stretched.

Overhead Levels to Watch

Around $175. This zone lines up with prominent countertrend peaks from May and October of the prior year, where sellers previously stepped in. It also matches a bars pattern projection. That technique copies the price move that came before the flag and lays it over the chart starting from the breakout point, giving a rough target if the rally repeats its earlier pace. Reaching this area would also complete a five-swing structure consistent with classic Elliott Wave theory, which holds that trends often unfold in five waves before a larger correction.

Around $215. If buyers push the stock decisively through $175, the next area sits just below AMD’s March 2024 high. That top was marked by a textbook shooting star candlestick: a small body near the session’s low with a long upper wick, showing that buyers pushed price up but sellers drove it back down by the close. Investors who bought at lower prices may choose to take profits as the stock approaches that earlier peak.

Support Levels on Pullbacks

Around $135. The first level to monitor on a decline sits near the low of the flag pattern. It also aligns with a horizontal line reaching back to the previous September. A drop back into the flag would weaken the breakout case, so buyers may defend this zone.

Around $115. A deeper retracement could bring the stock back to a trendline connecting a series of peaks and troughs formed between January and June. Longer-term investors may look for entry points here.

Reading These Levels

Support and resistance are zones, not exact prices. Stocks often overshoot or stall short of them. The levels show where earlier buying or selling clustered, which may make a reaction there more likely. They do not predict that the price will reach any of them. The analyst view and the chart setup are separate inputs. A chip comparison speaks to AMD’s competitive position. The chart reflects how traders responded to that view, and it can change as new product, earnings or market news arrives.