Key Takeaways

• Advanced Micro Devices shares closed at their highest level since January on Monday, lifted by optimism that trade discussions between the U.S. and China could lead to reduced export curbs.

• After breaking out from a descending broadening formation last month, AMD shares have traded mostly sideways just below the closely watched 200-day moving average.

• Investors should monitor major overhead areas on AMD's chart around $123, $145 and $175, while also watching a key support level near $108.

Advanced Micro Devices (AMD) shares will likely remain in focus after hitting their highest level since January on Monday, lifted by optimism that trade discussions between the U.S. and China could lead to reduced export curbs.

Chipmakers rallied after White House National Economic Council Director Kevin Hassett said on CNBC early Monday that officials from Washington and Beijing intended to discuss the release of rare earth minerals to the U.S. and the expansion of Chinese access to American-made semiconductors during talks between the two countries taking place in London this week.

In April, AMD cautioned its results would be affected by charges of roughly $800 million related to tightening restrictions on sales of its chips to China, while rival AI behemoth (NVDIA) warned it would take a potential $5.5 billion charge related to limits on exports of its H20 chip.

AMD shares gained nearly 5% on Monday to close at around $122. The stock has risen nearly 60% from its early April-low, putting it back to where it started 2025, as investors assess whether the company can make further inroads into the booming AI chip market.

Investors will learn more about AMD's plans for artificial intelligence at the company's "Advancing AI" event on Thursday, which features a keynote address from CEO Lisa Su.

Below, we take a closer look at AMD’s chart and use technical analysis to identify major price levels that investors will likely be monitoring.

200-Day Moving Average in Focus

After breaking out from a descending broadening formation last month, AMD shares have traded mostly sideways just below the closely watched 200-day moving average (MA).

More recently, the stock’s price has nudged toward the May high, a move that has coincided with the relative strength index indicating strengthening price momentum. It’s also worth pointing out that the shares registered their highest trading volume in nearly a month on Monday, indicating growing interest in the chipmaker’s stock.

Let’s identify three major overhead areas on AMD’s chart to monitor if the shares continue to trend higher and also locate a key support level worth watching during possible retracements.