AMD News: Advanced Micro Devices stock drops as Fed meeting threatens growth sectors

NASDAQ:AMD fell by 1.32% on Tuesday as the broader markets dipped.
AMD meets resistance, even as options flow shows traders are bullish on AMD’s future.
AMD rival Intel is preparing to unveil its newest Alder Lake CPU.

NASDAQ:AMD faltered again on Tuesday, as tech stocks were battered and the NASDAQ regressed by 0.71% ahead of a key Fed meeting to discuss inflation and economic forecasts. Shares of AMD dipped by 1.32% to close the trading day at $80.47. The stock is trading above its 50-day moving average but well below its 200-day moving average, showing that AMD could be at an inflection point in terms of where it will move next. AMD wasn’t the only chipmaker to fall as NVIDIA (NASDAQ:NVDA) fell 1.28% as well, cooling off from its recent rally ahead of its impending 4 to 1 stock split.

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AMD once again met resistance after attempting to breakout from its prolonged period of consolidation. The stock has been coiling within range and has made both lower lows and higher highs during that time. Option flow shows that traders are still bullish with June 18th options seeing over 90,000 call contracts compared to only 26,000 put contracts on AMD.

AMD stock forecast

AMD rival Intel is set to release its Alder Lake CPU which will be the company’s largest architecture update since 2006. Intel is anticipating twice the performance from its current Tiger Lake CPUs, and is hoping to win back share of the CPU market that AMD has been whittling away from Intel with its Ryzen CPUs. Intel is also set to unveil its Sapphire Rapids data center chips, which the company hopes will allow it to lessen the gap with data center leader NVIDIA.

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