After a morning of its stock surging, Advanced Micro Devices Inc. (AMD  ) was heading down before a slight reversal on Tuesday as investors could be responding to an expanded cloud infrastructure agreement with Alphabet Inc.'s (GOOGL  ) Google and rotated capital away from rival NVIDIA Corp. (NVDA  ).

Google unveiled its new TPU 8tx artificial intelligence computing system on Monday, selecting AMD's fifth-generation EPYC processors to power the platform alongside its in-house AI chips. The system targets confidential computing, which safeguards sensitive data while programs run.

Google Cloud executive Mark Lohmeyer stated that the partnership brings hardware-enforced confidential computing to cloud TPUs for the first time.

Rival Headwinds Trigger Rotation

Trading desks directed capital out of Nvidia and into AMD following corporate governance developments at the semiconductor designer. Nvidia stock declined after its board launched an independent investigation into CEO Jensen Huang's personal relationships. Leadership uncertainty prompted market participants to reallocate funds directly toward AMD.

Wall Street sentiment remains largely positive toward the semiconductor manufacturer. The consensus price target among 34 equity analysts tracked stands at $616.89, representing potential upside of 15.6% from current levels.

Oppenheimer upgraded AMD on Monday, from Perform to Outperform with a $600 price forecast.

Technical Analysis

AMD is trading 2.5% above its 20-day SMA and 1.1% above its 100-day SMA, but still 3% below its 50-day SMA - an important tell that the stock is trying to transition from a pullback into a new leg higher. The bigger-picture trend remains constructive with price 27.2% above the 200-day SMA, even though the 20-day SMA sitting below the 50-day SMA keeps near-term trend pressure in place.

RSI at 51.07 is neutral, which suggests this bounce isn't "stretched" yet and has room to build if buyers keep control.

  • Key Resistance: $579 - Nearby ceiling that lines up with a prior pivot zone and sits above the 50-day SMA area where rallies can fade
  • Key Support: $502.50 - Nearby floor that's close to recent consolidation territory and helps define the current pullback's risk level
Zooming out, the stock's major turning points still frame the current setup: a swing high and 52-week high formed in October, followed by a swing low in November when momentum washed out. Since then, the chart has been working back into an uptrend structure, but reclaiming the 50-day moving average area is the cleaner technical "confirmation" bulls typically want.

AMD Stock Price Activity: AMD shares were up 0.50% at $511.13 at the time of publication on Tuesday, according to Benzinga Pro data.