Chart of the Day: AMD AI Chip Growth Signals Strength Toward $175
Advanced Micro Devices (AMD) is gaining momentum again—this time driven by AI chip growth and renewed investor confidence. After a brief pullback, AMD is pivoting higher, recently trading around $157.10. We now see a near-term target of $175 as technicals and fundamentals align.
What’s fueling this bullish setup?
📈 Insider Confidence in AMD AI Chip Growth
Philip Guido, AMD’s Executive Vice President and Chief Commercial Officer, purchased 8,800 shares—an investment of nearly $1 million. That level of insider buying often reflects strong conviction in AMD’s future, especially as it pushes deeper into the AI chip space.
🤖 AMD AI Chip Growth in the Data Center Market
AMD is aggressively expanding its presence in the data center AI chip market. Chair and CEO Lisa Su projects that the market could hit $500 billion by 2028, a jump from previous forecasts of $400 billion by 2027. For context, that’s nearly equal to the entire global semiconductor industry’s 2023 revenue.
Su noted that AI demand has exceeded AMD’s expectations, positioning the company for long-term growth.
🚀 MI300X: AMD’s Fastest-Ramping AI Product
AMD’s latest generation AI chips—particularly the MI300X—are breaking ground fast. Su called it the “most advanced AI accelerator in the industry,” a bold claim that puts AMD toe-to-toe with Nvidia’s H100 chip.
This aggressive push positions AMD at the center of one of the fastest-growing tech sectors of the decade.
With insider buying, exponential AI chip growth, and innovative products hitting the market, AMD looks well-positioned for a breakout.
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Learn more about Ian’s Premium Options Strategies.