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Advanced Micro Devices (AMD) is one of the most recognized names in the semiconductor world—known for competing head-to-head with giants like Intel and Nvidia. From powering gaming consoles to fueling the data centers behind AI models, AMD plays a key role in the global tech ecosystem.

But lately, it’s facing major headwinds.

A new wave of U.S. export restrictions targeting advanced AI chips has triggered an $800 million inventory write-down for AMD—and sparked renewed concerns about the company’s heavy reliance on China.

The stock is down over 40% from recent highs, and investors are asking the big question:

Is this a red flag—or a rare buying opportunity?

This is where the Invest Diva Diamond Analysis (IDDA) framework comes in.

The IDDA breaks investing into 5 clear steps:

1. Capital Analysis – Your personal risk tolerance.
2. Intentional Analysis – Your unique financial goals and timelines based on your age, health, and lifestyle.
3. Fundamental Analysis – The viability of the asset based on company performance, financial health, and market position.
4. Sentimental Analysis – The current emotions of Wall Street and other market participants.
5. Technical Analysis – Historical price action to identify key psychological levels and market patterns.

Let’s dive into this using the Invest Diva Diamond Analysis (IDDA) framework.

IDDA POINT 1&2 – CAPITAL & INTENTIONAL

The capital and intentional analysis need to be conducted by you.

Select your assets in alignment with your financial goals. Listen to your intuition about each asset, but remember to invest based on your own values, not just because of recommendations from others.

IDDA POINT 3 – FUNDAMENTAL

♦ Strong Data Center Growth

AMD is growing fast in the AI race. In Q4 2024, revenue hit $7.6 billion—up 24% from the year before. Most of that growth came from their Data Center segment, thanks to their EPYC server chips (used to power cloud servers) and Instinct AI accelerators (specialized chips that help train and run AI models faster).

♦ Big Demand for AMD AI Chips
Companies like Meta, Microsoft, and Oracle are already using AMD’s MI300X chips to power AI tools like Llama and Copilot. And AMD just signed a $2+ billion deal with Oracle for even more GPUs. That’s big.

♦ Setback: U.S.-China Export Rules
The U.S. government now limits exports of some AI chips to China. AMD expects an $800 million charge because of it. That’s a bump in the road, but not a crash. AMD still has plenty of other customers ready to buy.

♦ New Chips Coming
AMD is rolling out new, faster chips (like the MI350) in mid-2025. These compete with Nvidia’s top AI products. It’s a smart move that could help AMD grab more market share.

♦ Diversified Growth Strategy
They’re not putting all their eggs in one basket. AMD sells chips for gaming, laptops, servers, and AI. Plus, they just bought ZT Systems to make their AI offerings stronger and faster to launch.

Why not low? Because AMD relies more on China than some competitors—and if the trade war gets worse, that could sting. But their tech is strong, demand is high, and their roadmap looks promising. That’s why many investors still say: Buy the dip.

IDDA POINT 4 – SENTIMENTAL

Market sentiment around AMD is a mix of fear and excitement. The stock is down nearly 50% from its highs, but many investors still see it as a big player in the AI race.

♦ Bullish Vibes Are Strong
Most analysts are bullish. AMD’s AI chips are getting serious attention—especially after a $2B+ deal with Oracle. They’re also ramping up their next-gen MI350 chips to compete with Nvidia.

♦ CEO Confidence
AMD’s leadership says they expect “strong double-digit revenue and EPS growth” in 2025. That’s a bold statement in a shaky market—and it’s giving investors hope.

♦ But There’s Nervous Energy Too
The U.S. government now requires licenses to ship AMD’s AI chips to China. That could cost the company $800 million. And China accounts for 24% of AMD’s total revenue. So yes—people are nervous.

♦ Tariffs and Trade War Fears
The chip wars between the U.S. and China are heating up. That’s causing emotional reactions in the market, even if the long-term impact isn’t fully clear yet.

♦ Still, the AI Train Keeps Rolling
Despite the noise, most investors believe demand for AI chips will keep growing—and AMD is well-positioned to ride that wave.

Investors are optimistic about AMD’s AI potential, but trade war headlines and China exposure keep sentiment shaky. Fear is present—but belief in the company is stronger.

IDDA POINT 5 – TECHNICAL

Bearish Signals in the Medium Term

AMD has broken below the Ichimoku Cloud, which is generally a bearish sign.
The Tenkan (conversion line) is also below the Kijun (baseline), reinforcing the bearish momentum.
The lagging span has dipped below the price and the cloud—another bearish confirmation.
The future cloud is turning red, which could signal more downside ahead unless something shifts fast.

But Long-Term Uptrend Still Intact

Despite recent weakness, AMD hasn’t broken its long-term bullish structure. We’ve seen this kind of correction before—and the stock has recovered each time. The long term uptrend still holds strong.

RSI is 32

This puts AMD in oversold territory.

The last time the RSI hit this level was October 2022—right before a major bounce. History doesn’t always repeat… but it does like to rhyme.

(Click on image to enlarge)

Potential Buy Limit (BL) Ideas:

$77.44

$67.00

$54.41

Here are the Invest Diva ‘Confidence Compass’ questions to ask yourself before buying at each level:

1. If I buy at this price and the price drops by another 50%, how would I feel? Would I panic, or would I buy more to dollar-cost average at lower prices?

2. If I don’t buy at this price and the market suddenly turns around and starts going up again, will I beat myself up for not having bought at this level?

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals

The chart shows medium-term weakness, but long-term potential. The key is your confidence and your timeframe. If you’re in for the long haul, these dips might be golden.

SUMMARY: FINAL THOUGHTS

AMD is facing strong headwinds right now—mostly tied to U.S.-China tensions and new export restrictions on its AI chips. That $800 million charge is no joke. But when you zoom out, the long-term picture still looks promising.

Fundamentally, AMD is strong. The company is growing fast in data centers and AI, thanks to their EPYC server chips and Instinct accelerators. The Oracle deal and MI350 launch are major wins. Fundamental risk: Low.

Sentimentally, investors are shaken—but not broken. The market is pricing in China risks, but also sees AMD as a serious Nvidia competitor. CEO commentary is confident. Overall sentiment is mostly bullish. Sentimental risk: Medium.

Technically, the chart shows medium-term weakness, but AMD is oversold with RSI at 32 (last seen before the October 2022 rally). The long-term trend remains intact. Technical risk: Medium-High.

Bottom Line
If you believe in the AI boom—and in AMD’s role in it—this could be a great buying opportunity. But be ready for short-term swings.

 Recommendation: Buy (for long-term investors)

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