### Monitoring Key Technical Levels for AMD Stock Amid Rising Optimism in AI Sector

Key Points

• Advanced Micro Devices (AMD) experienced a notable surge of over 8% on Tuesday, reaching its highest closing level since late 2021, driven by the increasing optimism surrounding the demand for its semiconductors fueled by artificial intelligence (AI).
• Analysts at Barclays, including Tom O’Malley, anticipate that AMD could achieve $4 billion in sales from AI chips this year. KeyBanc analysts also foresee growth potential from chips that power AI servers.
• Recent developments include the introduction of a new AI server chip by AMD, akin to Nvidia’s technology used by OpenAI for ChatGPT. Companies such as Meta (META) and Microsoft (MSFT) have disclosed plans to utilize AMD’s chips for AI inference tasks and cloud computing operations.
• With the stock surpassing a flag pattern in the recent session, there are indications of further bullish momentum for AMD.
• The technical analysis chart for AMD illustrates the breakout above the June 2023 swing high in the previous month, followed by a successful retest of the breakout level. The current price action suggests a potential continuation of the positive momentum, but attention should be paid to the $164.5 level, which could pose as a resistance point due to the stock’s historical high.

Source: TradingView.com.