AMD shares reached a record $267.08 on 29 October 2025, then moved into a pullback with a three-swing zigzag pattern. From the peak, wave ((A)) fell to $194.28 and wave ((B)) rose to $266.96.
Wave ((C)) then declined and ended at $185.18 on the one-hour chart. This completed wave II at a higher degree and ended the corrective phase.
The pullback contained three clear swings and finished within the 100% to 161.8% Fibonacci extension zone of wave ((A)). Wave ((C)) did not reach the 161.8% level.
From the $185.18 low, a new rise began, with wave 1 reaching $209.21. Wave 2 then pulled back to $192.27.
A projected level is near $230, based on the 161.8% Fibonacci extension of wave 1. The $185.18 level is treated as a key pivot for the current move.
Based on the price action from last year, the corrective phase for AMD appears complete. We view the low at $185.18 as a significant floor, establishing a base for a new upward impulsive wave. This suggests the stock is positioning for a sustained rally in the coming weeks.
This bullish technical setup is reinforced by strong underlying fundamentals reported earlier this year. AMD’s Q4 2025 earnings showed a 45% year-over-year surge in data center revenue, largely driven by demand for its new AI accelerators. This growth trajectory provides a solid backdrop for the anticipated price advance.
For traders anticipating this move, buying call options with expirations in May or June 2026 presents a direct way to participate in the upside. Focusing on strikes around the $215 level could offer a favorable risk-reward profile for a move toward the initial target of $230. This strategy allows for leveraged gains if the upward momentum accelerates as expected.
Further confidence comes from recent industry data released this month showing AI server shipments grew 22% in the first quarter of 2026. AMD has notably increased its market share within this expanding sector, a pattern reminiscent of the growth phase we saw back in 2023. This supports the idea that the current rally is backed by genuine business expansion.
An alternative strategy is to sell out-of-the-money bull put spreads with the short strike placed below $190. This approach benefits from time decay and the stock staying above the critical support level. As long as AMD holds above the $185.18 pivot, this position would generate income while maintaining a bullish bias.
Ultimately, the $185.18 level is the critical pivot for any bullish derivative play. A decisive break below this price would invalidate the immediate upward structure and force a reassessment of the trend. Therefore, we are using this low as our key line in the sand for managing risk on all new positions.
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