Advanced Micro Devices (NASDAQ:AMD) stock signal, a fundamental snapshot, and a technical view on where its share price is heading. What to know before the market opens on February 3rd, 2026, after AMD closed at $246.08, up 3.95% during the previous session, before advancing 2.19% in after-market hours.
Short Trade Idea
Enter your short position between $245.24 (the intra-day high of its last bearish candlestick) and $255.55 (an intermediate horizontal resistance zone).
Market Index Analysis
- Advanced Micro Devices (AMD) is a member of the NASDAQ 100, the S&P 100, and the S&P 500 indices.
- All three indices trade within bearish chart patterns with decreasing bullish trading volumes.
- The Bull Bear Power Indicator of the NASDAQ 100 Index is bearish with a descending trendline.
Market Sentiment Analysis
Equity futures suggest a positive open, building on yesterday’s rally as markets brush off the sell-off in gold, silver, and Bitcoin. The US announced a trade deal with India after India and the EU signed a massive trade deal. Given the partial government shutdown, Friday’s January NFP report will be delayed. The sole focus remains tech earnings from the AI sector, which have been mixed. Palantir beat expectations and raised its outlook, sending shares higher in after-market action, with AMD set to report today.
Advanced Micro Devices Fundamental Analysis
Advanced Micro Devices is an industry-leading chip manufacturer at the forefront of the global AI race. It is also a core player in the gaming sector, where its hardware is among the best for high-end users, and a significant provider of server hardware to data centers.
So, why am I bearish on AMD ahead of today’s earnings release?
AMD may beat earnings on the top and bottom line. Still, I am wary of its outlook, especially for its MI450 AI accelerators and Helios rack-scale systems. AMD depends 100% on TMSC for its most-advanced chip manufacturing, creating potential bottlenecks. I am equally concerned about hyperscalers like Google (TPU), Amazon (Trainium), and Microsoft (Maia) developing in-house AI chips, and competition from NVIDIA and Intel taking market share from AMD. Insider selling by C-suite executives adds to downside catalysts.
Metric | Value | Verdict |
P/E Ratio | 128.27 | Bearish |
P/B Ratio | 6.34 | Bearish |
PEG Ratio | 0.51 | Bullish |
Current Ratio | 2.31 | Bullish |
ROIC-WACC Ratio | Negative | Bearish |
Advanced Micro Devices Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 128.27 makes AMD an expensive stock. By comparison, the P/E ratio for the NASDAQ 100 is 33.51.
The average analyst price target for AMD is $289.23. This suggests good upside potential with expanding downside risks.
Advanced Micro Devices Technical Analysis
Today’s AMD Signal
Advanced Micro Devices Price Chart
- The AMD D1 chart shows price action inside a bearish price channel.
- It also shows price action between its ascending 38.2% and 50.0% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator turned bullish, but the price is trading below its descending trendline.
- The average bearish trading volumes are higher than the average bullish trading volumes.
- AMD mirrors the NASDAQ 100, a bullish confirmation, but bearish catalysts are rising.
My AMD Short Stock Trade
- AMD Entry Level: Between $245.24 and $255.55
- AMD Take Profit: Between $185.44 and $194.28
- AMD Stop Loss: Between $266.96 and $274.97
- Risk/Reward Ratio: 2.75
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