Advanced Micro Devices Stock Forecast and News: AMD opens higher Thursday after two pullback sessions

• AMD stock fell heavily in both Tuesday and Wedneday sessions.
• AMD rocketed over 10% on Monday after re-named Facebook said it would use their processors in its data centers.
• Recent upgrades have moved its consensus price target up to $140.51.

Advanced Micro Devices (AMD) saw its stock tank 6.1% on Wednesday to $139.87. It was a bad showing and erased much of Monday's 10% run-up that came from the chip makers' new business relationshiop with Meta Platforms (FB). AMD stock is up 1.8% to $142.38 in Thursday's premarket at the time of writing.

Advanced Micro Devices (AMD) Stock News: new business deal with IBM

IBM's cloud division has chosen AMD's 3^rd Gen AMD EPYC processors for its IBM Cloud Bare Metal Servers that it retails in it cloud catalog. The new server offering from IBM features 128 cores, up to 4TB of memory and 10 NVMe drives per server.

“Our customers have a high demand for computing processing power and the new 3rd Gen AMD EPYC processors provide the high levels of performance and scalability we were looking for,” said Suresh Gopalakrishnan, vice president, IBM Cloud.

According to the press release, "The server configuration with AMD's 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 Technical Analysis: chart shows AMD stock back at support

With two plunging daily candles in a row, AMD stock is down near support. The 9-day moving average is now at $137.68, and the 21-day moving average is a bit lower at $126.74. Thursday's premarket higher prices, however, make it appear as if there may be renewed bullish price action today.

From Wednesday: "On the other side of things, if AMD stock breaks above the top trend line of the ascending price channel at $155.28, expect a further run-up to take place. On Monday, AMD's swing high price bounced down from the 361.8% Fibonacci retracement at $153.71. On Tuesday, it opened just above it, which would lead one to believe that level has some significance. AMD stock price needs to surmount this level first before taking on the 423.6% Fibo at $162.96.

FXStreet is sticking with this. Closing above $155.28 is still the target for bulls. Tuesday's all-time high of $155.57 tried its best, but too many traders were using that top trend line as a target to take profit. Note that the Relative Strength Index (RSI) is now down to 69, just out of overbought territory. Additionally, the consensus price target is now $140.51 on Wall Street, which may keep some more conservative investors from buying as much in this price range.

AMD 1-day chart