Advanced Micro Devices closed at $494.95 on July 27, 2026, but technical indicators suggest the stock might slide about 39% to $300 by early January 2027. This prediction comes after a strong AI-fueled rally pushed AMD near $585, its recent peak. The warning comes from a long-term chart that tracks AMD in a rising channel since 2018, which now shows signs of a correction phase following a surge from March 2026 lows.
The weekly Relative Strength Index (RSI) recently hit resistance levels that have historically preceded major pullbacks, with similar patterns triggering declines in 2020, 2022, and 2024. The forecast focuses on a retreat toward the weekly 100-period moving average, expected to hit around $300 by late 2026, marking a significant downside from current prices.
Despite this bearish technical outlook, AMD’s business fundamentals remain strong, driven by AI demand. The company reported $10.3 billion in revenue for Q1 2026, a 38% increase year-over-year, with data center revenue soaring 57% to $5.8 billion. Earnings per share grew 43% to $1.37, and management projects $11.2 billion in revenue for the second quarter. This juxtaposition of solid earnings and a looming technical correction highlights the stock’s complex near-term path.
