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After forming record highs in the last session, AMD stock price opened lower on Thursday. This correction occurs when the benchmark indices have given a gap-up opening. The S&P 500 index is up 37 points, while the tech-heavy Nasdaq 100 index has gained 163 points at press time.
The broader market sentiment around the semiconductor stocks remains positive as almost all the top stocks in the sector except for AMD are trading in the green on Thursday morning. The correction in AMD shares can be attributed to profit-taking, which is very common when a stock hits a new all-time high.
After a strong surge in the stock of Advanced Micro Devices, the Wall Street analysts seem to be divided. DZ Bank and Mizuho Securities have recently revised their outlooks on AMD stock. DZ Bank has downgraded chipmaker's shares from 'buy' to 'hold' while maintaining its outperform rating for the stock. The updated price target by the Bank is now $200.
On the other hand, Mizuho Securities has maintained its 'buy' rating for NASDAQ: AMD, raising its price target to $235 from $200. These conflicting outlooks might be a reason behind today's sell-off in the stock.
While AMD faces increased selling pressure today, Nvidia stock continues its stride toward the $1,000 mark. The stock of the AI-chip maker is up 3.04% at press time as the investors bet on breaking the major psychological barrier soon.
On a daily timeframe, AMD has broken below last week's high of $211. The stock looks set to fill the price gap, which was left below $207.32 after a bullish opening on Wednesday. In the event of a deeper pullback, the support zone below the $200 level might come into play, which is visible on the following chart.
For AMD stock price forecast to remain bullish, the shares need to break above $215 resistance by closing a daily candle above this level. While a short-term correction is possible, the market structure on the chart remains very bullish.
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