AMD Shares Drop As Investors Re-Evaluate AI Chip Growth Amid Competition
• AMD shares fell for a second straight session as investors reassessed AI chipmaker growth potential • Analysts expect AMD to grow earnings by 40% annually to over $7 per share by 2026, driven by AI chip sales • AMD may find price support around $176 level from uptrend line, 50-day moving average, and 38.2% Fibonacci level • AMD could see further weakness towards the 200-day moving average at $127.99 if $176 support level breaks down • Meta and Microsoft to use AMD's new AI chips, showing demand for alternatives to Nvidia's costly GPUs