Advanced Micro Devices (AMD) stock is surging higher on Wednesday, up more than 12%.

Long investors can breathe a sigh of relief following the earnings release, not just because of Intel’s (INTC) disappointing update, but also because AMD shares were only modestly higher in after-hours trading last night.

Advanced Micro Devices posted a slight top- and bottom-line beat, and while its sales projection for the following quarter was a touch light compared to expectations, investors approved.

I’ll say it again: Wall Street appears to be giving firms a pass on earnings right now, punishing only the genuinely terrible quarters. As long as the results are within expectations, the reaction appears to be relief more than anything else.

For what it’s worth, Nvidia (NVDA) stock is also reacting positively to AMD’s results. At Wednesday’s peak, the graphics chip specialist’s stock was up around 3.5%.

AMD Stock Trading Based on Earnings

AMD stock is doing an excellent job of breaking through the $80 mark. This zone is crucial since it represents key fourth-quarter resistance, the 50% retracement of the broader range, and the dropping 200-day moving average.

But — and there’s always a but — we have the Fed on Wednesday and Big Tech results on Thursday.

If AMD can sustain price levels above $80, it will be a significant step forward for the bulls. It opens the way to the $85 level, which contains the stock’s 61.8% retracement and sliding 50-week moving average.

Above that, $90-Plus is in Play.

A negative reversal from here would be disastrous, establishing $80 as a barrier until proven differently.

The gap-fill after earnings is $75.20. While bulls do not want to see a retreat to this level after such a strong first reaction to earnings, AMD stock is still technically sound as long as it holds the gap-fill and the 10-day moving average.

If it falls below $72.50, the 50-day and 21-day moving averages will come into play.

Below these levels, the movement gets much more bearish.

AMD is a high-quality chip stock that saw a severe peak-to-trough collapse in 2022, plummeting more than 66% from its highs.

It’s now attempting to surge higher, and the bulls are gaining ground. The rest of this week’s trading will be crucial.

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