When an AI Stock Isn’t Caught Up in the Hype

[Trading With Larry Benedict]( When an AI Stock Isn’t Caught Up in the Hype By Larry Benedict, editor, Trading With Larry Benedict Last week’s earnings from Nvidia (NVDA) showed that it is converting the AI boom into hard cash. When we [checked out NVDA yesterday]( we saw that its revenue had doubled from a year ago, with further growth expected ahead. However, not all companies caught up in the hype are having similar success. Advanced Micro Devices (AMD) is the one we’ll look at today. Its share price doubled in the first half of this year. But its Q2 earnings showed that its revenue was flat compared to Q1… and down 18% from 12 months ago. Yet AMD has the potential to capture more of the AI space in the future. So let’s see how things can play out from here… Recommended Link [PhD Economist and Former Goldman Sachs Exec Goes “Rogue” in New Tell-All Video]( [image]( Dr. Nomi Prins says “the rollout of digital cash is just the beginning.” That’s Phase I. 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Which is why, today, she’ll reveal [the surprising truth nobody in the mainstream media will admit to.]( She says, “You’re about to experience a massive ‘price shock’ unlike anything you’ve ever experienced in your lifetime.” To show you what’s going to happen to the U.S. financial system – And to help you prepare – Dr. Prins has agreed to an interview where she shares all the details about this crazy bombshell story. [Click here to view the shocking video now.]( -- Microsoft Team-Up AMD’s rally started back in October last year. Although you can’t see it on the chart below, that rally came off the back of a brutal year for AMD. It lost two-thirds ($100 billion) of its value. Advanced Micro Devices (AMD) [Image] Source: eSignal However, it went oversold and buying momentum returned. So AMD’s stock price established a base and began to rally. This coincided with the Relative Strength Index (RSI) breaking out of its lower range and into the upper half of its band. As the chart shows, this pattern repeated for each of AMD’s up legs. And each of those peaks reversed with the RSI retracing from overbought territory (upper grey dashed line). After retracing from its peak at ‘3,’ though, you can see how strongly AMD rallied in May. Despite briefly selling off after announcing its Q1 earnings beat, AMD gained over 60% in just four weeks. That was in part due to PC sales, a key AMD market, showing signs that it was coming out of the doldrums. However, what really drove AMD’s burst higher was the news that it was teaming up with Microsoft (MSFT) to develop AI chips. That put AMD’s rally into overdrive. As we saw [when we looked at AMD in July]( (orange arrow), though, that strong move reversed (‘4’). The RSI and stock price headed in different directions. Higher highs (upper orange line) versus declining momentum (lower orange line) pulled AMD’s stock price down. Take another look: Advanced Micro Devices (AMD) [Image] Source: eSignal Yet when we checked in on AMD on July 19, the RSI had just broken back into its upper range. And the 10-day moving average (MA, red line) had turned higher and was holding above the 50-day MA (blue line). At the time, it looked like AMD was setting itself for another run higher. But since then, AMD has drifted lower. So what am I looking for from here? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Stuck in Its Lower Range After crossing below the 50-day MA, the 10-day MA has continued to track lower. The 50-day MA rolled over too. AMD’s mixed Q2 earnings announcement compounded that fall. Despite beating analysts’ earnings per share (EPS) forecasts, the hype around its AI prospects has yet to find its way into AMD’s coffers. For AMD’s rally to resume from here, it is vital that buying momentum returns. We’ll need to see the RSI return (and stay) in the upper half of its band. If the RSI instead continues to drift and remains stuck in its lower band, AMD’s pullback may develop into a bigger down move. Regards, Larry Benedict Editor, Trading With Larry Benedict P.S. Even in big trends like AI, it can be tricky to know the best way to profit. As we just discussed, some AI companies haven’t moved in a straight line up… Yet this trend is too big to ignore. It’s set to disrupt a range of industries over the coming years and move trillions of dollars. That’s why I want to share an alternative AI play that’s about to experience a blitz of activity. On Wednesday, September 6, at 8 p.m. ET, I’ll explain what I’m talking about and the top play I see right now at [my 7-Day AI Blitz event](. I’d love to have you join me. So please, take just a second to [RSVP right here for free](. If you’re at all interested in profiting from AI, this is a must-see event. IN CASE YOU MISSED IT… [Move Your Money ASAP (Millionaire’s WARNING)]( This is a chart of the unprecedented money printing by the U.S. Government. Its causes are many, including a rocky stock market… some out of control inflation… layoffs that are always devastating… and more. If this causes you concern… You are not alone. [>> Wait until you see what’s NEXT for the stock market.]( Today, millionaire Jeff Clark (who predicted the crashes of 2008/2020/2022) is going live to issue his NEXT warning. [Click Here to Watch.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. 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