Advanced Micro Devices (AMD), a leading semiconductor company known for its CPUs and GPUs, is experiencing a sharp decline following its first-quarter revenue outlook, which fell short of market expectations.
AMD is turning down sharply after releasing a first-quarter revenue outlook that did not meet optimistic expectations. Price action is now overlapping the 225 area, signaling that a deeper decline may be underway. This move could still be corrective in nature, possibly forming a flat pattern. However, in flats, wave C tends to be sharp—and that appears to be unfolding now. There is potential for this decline to continue toward the open gap near 165 from October 2025, which serves as an important downside projection.
Adding to the bearish picture, a visible double top formation points to a much lower target near 122. This scenario would likely only play out if the 165 gap fails to produce a bounce. For the time being, further weakness is expected until the five subwaves of wave C from the 267 high are fully completed.
Key Highlights:
- Bearish continuation confirmed with overlap below 225
- Wave C of a flat likely unfolding, sharp downside pressure expected
- Next key downside target is the open gap at 165
- If 165 fails to hold, extension risk opens toward 120 (double top target)
- Bullish recovery possible only after a full 5-wave completion from 267 high
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