AMD Stock Forecast: Advanced Micro Devices jumps to new all-time high

• AMD stock rose above the all-time high in Thursday's premarket.
• Advanced Micro Devices stock continues 57% run that began in early October.
• AMD surged over 10% on November 8 after Meta Platforms said it would use EPYC processors in its data centers.

Shares of Advanced Micro Devices (AMD) rose as much as 5% to $158.89 at the start of Thursday's trading session to touch new all-time highs for the chip designer. This comes on the back of AMD's recent breakout of a bullish flag pattern and competitor Nvidia's (NVDA) earnings beat, which has pushed that stock up by 11% on Thursday. AMD shares did however pullback to $154 further into the session.

Advanced Micro Devices (AMD) Stock News: rumoured friendship with Samsung Foundry

AMD's surge on Thursday comes on the back of a slight pullback on Wednesday. AMD stock initially advanced to six-day highs of $154.66 before retreating sharply to hit a daily low of $149.69 and then settling down 0.7% on the day.

Taiwan-based outlet DigiTimes has reported on rumours that AMD is set to become Samsung Foundry's first 3-nanometer customer. The publication says that both AMD and Qualcomm (QCOM) are interested in moving from Taiwan Semiconductor (TSMC) to Samsung because of the former's close relationship with Apple, who is making waves by jumping from the consumer tech business into the chip designing field.

Separately, IC Insignts released a recent report saying it expects Advanced Micro Devices to post a revenue increase of 65% this fiscal year. This would put AMD in first place on IC Insights' list of fastest growing semiconductors, above Nvidia (3rd, 54%) and Qualcomm (4th, 51%).

Advanced Micro Devices announced that at this year's Supercomputing Conference, which is taking place currently through November 19 in St. Louis, it has more than tripled the percentage of the world's top 500 supercomputers that are powered by AMD tech. The chip maker now powers 73 of the top 500 supercomputers compared to 21 – the figure from 2020. The company also powers four of the top ten supercomputers in the world.

Last week IBM's cloud division announced that it has chosen AMD's 3^rd Gen AMD EPYC processors for its IBM Cloud Bare Metal Servers. The new server offering from IBM features 128 cores, up to 4TB of memory and 10 NVMe drives per server. AMD says the processors are particularly good for "compute-intensive workloads, virtualized environments, large-scale databases" and hosting massive multiplayer online games.

AMD key statistics

Advanced Micro Devices (AMD) Stock Forecast: follow the 9-day but watch RSI

AMD stock broke out on Monday, November 8, exploding 10.1% on news that Meta Platforms (FB) made the decision to power its new generation of data centers with AMD's EPYC processors and servers. After that point the stock slid into a bull flag formation before breaking out on Tuesday, November 16.

With AMD's latest all-time high coming just one week after its previous high, AMD should be seen squarely in a bullish light. AMD stock is now about 58% off its early October low and up about 60% year to date.

Throughout this entire saga, the 9-day moving average has been acting as keen support for AMD. At the moment the 9-day moving average sits at $148.63. It would be less than surprising if AMD decides to make it down here once again to collect more energy.

One point to note is that the Relative Strength Index (RS) is at 74. This is fairly high and in overbought territory but is quite a bit lower than the 87 mark achieved in the previous week. Most worrisome to at least some traders is the bearish divergence between the RSI and the daily chart. When the highs diverge (as seen on the chart) like this, it often means a reversal is in the works.

AMD daily chart