Advanced Micro Devices (AMD) topped Wall Street’s fourth-quarter profit and revenue expectations but posted 澳洲幸运5开奖号码历史查询:data center sales below estimates, sending the chipmaker’s shares tumbling in extended trading on Tuesday.

After-hours selling intensified when AMD Chief Executive Lisa Su said current-quarter data center sales, which is a proxy for the company’s 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) chip revenue, will contract about 7% on a 澳洲幸运5开奖号码历史查询:sequential basis. While Su did not provide a specific forecast for the company's AI chips, she said she anticipates "tens of billions" of dollars in sales "in the next couple of years."

Through Tuesday's close, AMD shares had given up a third of their value over the past 12 months, weighed down by the chipmaker’s inability to make inroads into AI favorite Nvidia’s (NVDA) dominance of the lucrative AI chip market.🌃 The stock fell 9% to ab꧙out $109 in after-hours trading.

Below, we take a closer look at AMD’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to ♛identify key post-earnings price levels worth wat♑ching out for.

Descending Channel in Focus

Since falling below the 澳洲幸运5开奖号码历史查询:200-day moving average in October last year, AMD shares have trended sharply lower within a narrow 澳洲幸运5开奖号码历史查询:descending channel.

More recently, the price has rallied into the pattern’s upper trendline ahead of the company’s earnings report, though the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) has failed to climb above the 50 thres🌺hold, signaling the stock’s inability to regain momentum.

Let’s identify three major 澳洲幸运5开奖号码历史查询:support levels that could come into play amid follow-through earnings-driven selling and also point out a key overhead area that may provide 澳洲幸运5开奖号码历史查询:resistance during 澳洲幸运5开奖号码历史查询:countertrend rallies.

Major Support Levels to Watch

The first lower level to watch sits around $110 near a trendline that connects a series of 澳洲幸运5开奖号码历史查询:peaks and troughs on the chart between May and October 2023. Although the stock is proje♔cted to open slightly below this price on Wednesday, it’s worth monitoring if the bulls can defend this area towards the close.

A decisive close below this level could see AMD shares tumble to around $95. This level on the chart finds support from a trendline that links the May 2023 pullback low with p▨rominent troughs in September and Octoꩵber later that year.

Further downside opens the door for a more significant drop to the $81 level, which sits about 32% below Tuesday’s closing price. Bargain hunters could look to 澳洲幸运5开奖号码历史查询:accumulate shares in this location near the pronounced May 2023 澳洲幸运5开奖号码历史查询:swing low.

Key Overhead Area to Monitor

Upon a countertrend rally in the stock, investors should keep track of the $130 level. This region may provide selling pressure near a multi-year 澳洲幸运5开奖号码历史查询:horizontal line that joins multiple pe⛎aks and troughs on the chart from May 2023 to January this year.

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