Tech giant AMD faces a strong sell-off
Shares of Advanced Micro Devices (AMD) fell 5.7% after a weeks-long rally, as investors began taking profits after the stock reached record highs. The stock dropped to $397.20 after hitting a daily high of $428.75, having reached an all-time high of $469.22 on May 11, 2026.
Additional pressure on the stock came from news of CEO Lisa Su's meeting with Chinese Vice Premier He Lifeng in Beijing, where AMD confirmed its intention to expand its investments and operations in China.
However, the market viewed this with caution, as US chipmakers like NVIDIA and Intel are facing significant challenges, such as:
Maintaining a presence in the Chinese market to preserve revenue.
Reducing their footprint due to US restrictions and geopolitical tensions.
Meanwhile, domestic Chinese companies like Huawei are gradually benefiting from any potential US withdrawal.
Technical Outlook for the Stock
The stock is still moving within an overall upward trend, despite some corrections as mentioned. The overall outlook remains bullish.
The $339 level is considered a good buying support level and could push the stock higher again if any buying signals emerge.
If the decline continues, we should monitor the $306 level, which is also considered an important nearby level for the stock.
