Advanced Micro Devices (NASDAQ:AMD) shares are enjoying a great year so far, being up 66.6% year-to-date.
The 2023 AMD story can get even better, according to Bank of America technical strategists. They see the stock being well-positioned to break out from 2022-2023 big bases on both an absolute price basis and relative to the S&P 500.
“A decisive rally above 102.54 would confirm this bullish pattern and favor further upside to 150. Until then, holding first support near 93-91 would keep this bullish setup intact,” the analysts said in a client note on Thursday.
In case the AMD stock breaches the abovementioned support, the analysts see the potential for shares to test the support base in the low $80s and high $70s. This base is supported by the rising 26, 40, and 200-week moving averages (MAs).
Still, it seems that the technical analysts favor a move to the upside.
This week’s update from BofA’s strategists is interesting given that the same broker downgraded AMD stock earlier this month.
“We continue to like AMD’s consistent execution and its breadth of product cycles in attractive compute/AI markets. However, in the near/medium-term we see a range of headwinds,” BofA semiconductor analysts said in a downgrade note.
Since the post-earnings selloff in early May, AMD stock gained 33%. Shares rallied 4% yesterday to secure the highest daily close in 11 months.