Warren Buffett’s Wisdom: Understanding AMD’s Oversold Position
Legendary investor Warren Buffett famously advises investors to be fearful when others are greedy and to be greedy when others are fearful. One method to gauge the levels of fear in the market is via the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. A stock is deemed oversold when its RSI drops below 30.
AMD Enters Oversold Territory
In trading on Friday, shares of Advanced Micro Devices Inc. (Symbol: AMD) reached oversold status, recording an RSI of 29.95 after trading as low as $98.69 per share. In contrast, the S&P 500 ETF (SPY) currently has an RSI of 42.9. For bullish investors, AMD’s RSI of 29.95 signals that the recent selling pressure may be waning, providing potential buy opportunities.
Performance Snapshot
Examining the performance chart below, it is noted that AMD’s 52-week range shows a low point of $98.69 and a high of $227.30, with the most recent trade at $99.79.
Discover 9 other oversold stocks to watch »
Additional Resources
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
