AMD Lagging PeersNASDAQ:AMD could very well be a laggard to its peers... it is still well below its all time high which suggests that either the market believes that NASDAQ:NVDA is the superior market dominator for chip producing going forward with NASDAQ:AMD having little upside or that the market has not yet priced in the full effect the AI boom will have on NASDAQ:AMD ... Either way, this is a pattern investors and traders will want to keep an eye on.
The descending triangle is usually a bearish pattern, especially with NASDAQ:AMD being below the all time high it set in 2022 at the $165 area. How ever, this pattern is promising for 0one simple reason : the AI boom and its effect on chip producing stocks.
We believe that NASDAQ:AMD is a laggard relative to Nvidia and has significant barriers to overcome in that regard. It’s playing catch-up in the AI chip space. Investors should remember that AMD is expected to release its competitor AI chips late this year while much of NASDAQ:NVDA growth has been priced in already and the sector ETF as a whole is already hitting all time highs [ NASDAQ:SMH ].
We lean bullish and we have placed targets for short-term traders to keep an eye on in the event this goes bearish as well.
