AMD fell 8.75% on Friday, but it’s still up nearly 20% this week. I’m watching, not chasing.
Here’s what happened: AMD closed at $534.06 on Friday, down $51.24 for the day, making it the worst performer in the S&P 500. Trading volume was about 49.16 million shares, nearly twice the usual level.
It surged to an intraday high of $571.14, then gave it all back. The low was $520.01, and it fell another 2.4% or so after hours to around $521.
But don’t forget last week: AMD closed at just $404.40 on November 5. Over five trading days, AMD gained 44.7%, while NVDA fell 8.5% over the same period.
My take: This isn’t an AMD-specific problem. The aftershocks of Nvidia’s leadership change swept across the entire chip sector. A 44.7% gain in five days was unsustainable in itself; Friday’s big sell-off was profit-taking turning into a rush for the exits, not a reassessment of the fundamentals.
What I’m doing: Watching, not chasing. I’ll talk about a recovery if it gets back above Friday’s high of $571.14. If it falls below Friday’s low of $520.01, the $500 mark is the next stop.
Do you think this is a normal pullback in a sector rotation, or have chip stocks gotten ahead of themselves in this rally?
$AMD $NVDA $AVGO
#AMD #U.S. stocks
Here’s what happened: AMD closed at $534.06 on Friday, down $51.24 for the day, making it the worst performer in the S&P 500. Trading volume was about 49.16 million shares, nearly twice the usual level.
It surged to an intraday high of $571.14, then gave it all back. The low was $520.01, and it fell another 2.4% or so after hours to around $521.
But don’t forget last week: AMD closed at just $404.40 on November 5. Over five trading days, AMD gained 44.7%, while NVDA fell 8.5% over the same period.
My take: This isn’t an AMD-specific problem. The aftershocks of Nvidia’s leadership change swept across the entire chip sector. A 44.7% gain in five days was unsustainable in itself; Friday’s big sell-off was profit-taking turning into a rush for the exits, not a reassessment of the fundamentals.
What I’m doing: Watching, not chasing. I’ll talk about a recovery if it gets back above Friday’s high of $571.14. If it falls below Friday’s low of $520.01, the $500 mark is the next stop.
Do you think this is a normal pullback in a sector rotation, or have chip stocks gotten ahead of themselves in this rally?
$AMD $NVDA $AVGO
#AMD #U.S. stocks
