NEW YORK – Shares of semiconductor giant Advanced Micro Devices (AMD) finished a volatile trading session on Monday with a significant loss, but a slight uptick in after-hours trading could signal a potential shift in momentum for the start of trading on Tuesday.
AMD stock closed the official session at
2.34, or 1.97%, for the day. The trading day was marked by a sharp intraday reversal. After opening at $116.04, the stock rallied to a high of $117.88 around midday before sellers took firm control, pushing the price down to a low of $115.06 in the afternoon.
Despite the bearish sentiment that dominated the latter half of the day, a key indicator for investors will be the after-hours performance. The stock edged up to $116.34 in post-market activity, a modest gain of 0.15%. While small, this positive movement suggests that selling pressure may have eased after the closing bell and that buyers see value at the current price level.
Analysis and Outlook for Tuesday:
The outlook for Tuesday is mixed, but there are reasons for cautious optimism.
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The Bear Case (Potential for Downside): The stock closed well below its previous close of
76.48) than its high ($187.28). The strong afternoon sell-off indicates that negative momentum is still a powerful force. If broader market weakness persists, AMD could re-test its daily low of $115.06.
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The Bull Case (Potential for Upside): The bounce off the day’s low and the positive after-hours trading are the most immediate bullish signals. This suggests the stock may have found a temporary support level. Investors will be looking to see if this minor after-hours strength can carry over into Tuesday’s pre-market session. If it does, AMD could attempt to reclaim some of Monday’s losses, with the first level of resistance likely being the day’s high of $117.88.
Conclusion: Based on the data, the stock appears poised for a potential stabilization or a slight upward move at Tuesday’s open. The positive after-hours activity, though minimal, is a direct signal of sentiment heading into the next session. However, traders should remain cautious, as the stock’s significant daily loss indicates the broader bearish trend remains intact.
