AMD Shares Rise in Pre-Market Wednesday as Tech Stocks Find Support

Advanced Micro Devices Inc. shares rose in pre-market trading Wednesday, as technology stocks gained support. Nasdaq futures were up 0.55%, and S&P 500 futures rose 0.46%.

AMD stock has posted strong gains over the past year. However, the shares remain below key short-term moving averages.

Large-cap tech stocks benefited from improved risk appetite ahead of Wednesday's open. Investors are also watching whether AMD can reclaim key moving averages after a recent pullback.

Technical Analysis

AMD shares are trading 0.7% below their 20-day simple moving average of $491.36. They are also 4.4% below the 50-day simple moving average of $510.42. This indicates a mixed short-term trend.

However, the longer-term trend remains bullish. AMD shares are 12.3% above their 100-day simple moving average of $434.57 and 49.4% above their 200-day simple moving average of $326.67.

The relative strength index stands at 47.78. A neutral reading suggests neither buyers nor sellers have firm control.

The 20-day simple moving average remains below the 50-day simple moving average, a short-term bearish signal. But the 50-day simple moving average is still above the 200-day simple moving average, supporting a longer-term bullish trend.

AMD formed a swing high in June, followed by a swing low in July. The July break below support has made it difficult for recent rallies to gain momentum.

Resistance sits near $530, while $463 represents a key support zone. A break above the $510-$530 range could strengthen the bullish scenario.

Analyst Outlook

The stock trades at a price-to-earnings ratio of approximately 123.6x, reflecting a premium valuation. It carries a consensus buy rating with an average price target of $591.39.

Argus Research maintained a Buy rating on August 6 and raised its price target to $625. Rosenblatt maintained a Buy rating the same day and raised its target to $700. JPMorgan maintained a Neutral rating on August 5 and raised its target to $550.

Edge Rankings

AMD scores strongly across several Edge metrics.

Its momentum score is 97.93, quality score is 94.17, and growth score is 94.84. However, its value score is only 4.55.

This combination points to strong growth and momentum but elevated valuation. Investors will watch whether AMD can deliver enough growth to justify this premium.

Top ETF Exposure

AMD holds an 8.10% weight in the iShares Semiconductor ETF. It also accounts for 7.74% of the CoreValues America First Technology ETF and 6.87% of the ARK Autonomous Technology & Robotics ETF.

Its sizable weight means inflows or outflows from these ETFs could influence demand for AMD shares.

Price Action

AMD stock rose 0.64% to $487.50 in Wednesday's pre-market trading.