AMD Stock Spotlight Chipmaker Unveils Latest AI Processors

AMD unveils new AI chips, plans for future development. Shares rise. Chart analysis shows support at $133 level. Potential downside risk.

AMD shares are on the rise in premarket trading following the unveiling of their newest AI processors at the Computex technology trade show. CEO Lisa Su introduced the MI325X accelerator, set for release in the fourth quarter of this year, and discussed plans for the MI350 and MI400 series in the coming years. The company is focused on advancing AI technology, aiming to outperform competitors like Nvidia in the AI chip market.

Despite Nvidia's dominance, AMD is gaining market share as tech giants invest in AI infrastructure. Microsoft recently announced their use of AMD Instinct GPUs to power their Copilot AI models, leading to projections of over $4 billion in AI chip sales for AMD this year. The company's commitment to AI development is evident in their product roadmap and strategic partnerships.

On the technical side, AMD shares broke above an ascending triangle pattern last year but have seen a recent retracement from their all-time high. The $133 level is a key area to watch for potential support, as it aligns with the 50-week moving average on the chart. Failure to hold this level could lead to a retest of lower support near the 200-week MA at $104.73.

Investors should keep an eye on AMD's performance in the AI chip market and monitor technical indicators for potential price movements. The company's focus on innovation and strategic partnerships could drive future growth and solidify their position in the competitive AI industry.