AMD Jumps as New AI Chips Challenge Nvidia's Lead

Advanced Micro Devices (AMD, Financials) is seeing some positive waves. HSBC analysts said the companys latest MI350 AI chips can compete directly with Nvidias (NVDA, Financials) current lineup; and whats coming next from AMDthe MI400 seriesmight give Nvidias next-gen Vera Rubin platform a real run for its money.

After lagging for most of the past year, AMD finally showed some muscle. Shares exploded out of a flag pattern; volume surged to a one-week high; and momentum indicators like RSI and moving averages are flashing bullish signs. The setup looks clean; the follow-through matters now.

Technically speaking, the first major hurdle sits near $175; its a sticky zone tied to last years highs. If bulls manage to punch through, $215 could come into viewwhere some traders may choose to take profits. On the flip side, if the stock cools off, $135 is your first line of defense; $115 is deeper support for patient buyers.

This move mattersnot just because its a short-term breakoutbut because AMDs positioning in the AI arms race is finally gaining credibility. Nvidias dominance isnt in question yet; but AMD is no longer just a shadow fighter. Its stepping into the ring with real gloves on.

Investors will want to keep an eye on AMDs next earnings; and any updates on chip shipments or data center deals; because this story is only just starting.