Expert warns this stock is signaling start of AI bubble burst
The post Expert warns this stock is signaling start of AI bubble burst appeared on BitcoinEthereumNews.com.
Amid lingering concerns about a possible artificial intelligence (AI) sector bubble, a trading expert has warned that Advanced Micro Devices (NASDAQ: AMD) may be flashing early warning signs. The outlook by TradingShot, shared in a TradingView post on December 11, drew parallels between AMD’s current stock behavior and its performance during the Dot-com era. Notably, AMD closed the last session down more than 4%, trading at $210, while year to date the stock is up 74%. AMD one-week stock price chart. Source: Finbold AMD stock outlook Using a monthly chart dating back to 1984, the analysis indicated that the stock is once again pressing against a multi-decade higher-highs trend line that has historically signaled major market tops. In this case, AMD has recently posted a higher high within its six-year uptrend, which the analyst views as the technical peak of the current cycle. The subsequent rejection is expected to develop into a bearish leg that could extend toward $110. AMD stock price analysis chart. Source: TradingView The analysis also drew parallels between the Dot-com era and today’s AI-driven rally, noting similarly symmetrical bullish and bearish price structures. In this view, the current fractal has already topped and is entering a corrective phase, potentially pulling the stock toward its 100-month moving average (MA), a key long-term support level. Notably, during the previous technology sector cycle, a comparable correction was followed by a final parabolic surge that peaked just above the 1.618 Fibonacci extension before the bubble burst. If that pattern repeats, the AI cycle could still deliver a strong upside phase after the current correction runs its course. For long-term investors, TradingShot’s outlook suggests a much higher AI bubble peak later this decade, with the technical roadmap pointing to a potential move toward about $435 by around 2030 if historical symmetry…
