AMD
could very well be a laggard to its peers... it is still well below its all time high which suggests that either the market believes that
NVDA
is the superior market dominator for chip producing going forward with
AMD
having little upside or that the market has not yet priced in the full effect the AI boom will have on
AMD
... Either way, this is a pattern investors and traders will want to keep an eye on. The descending triangle is usually a bearish pattern, especially with
AMD
being below the all time high it set in 2022 at the $165 area. How ever, this pattern is promising for 0one simple reason : the AI boom and its effect on chip producing stocks. We believe that
AMD
is a laggard relative to Nvidia and has significant barriers to overcome in that regard. It’s playing catch-up in the AI chip space. Investors should remember that AMD is expected to release its competitor AI chips late this year while much of
NVDA
growth has been priced in already and the sector ETF as a whole is already hitting all time highs [
SMH
]. We lean bullish and we have placed targets for short-term traders to keep an eye on in the event this goes bearish as well.