This is a dedicated price action analysis of AMD stock. We observed that AMD stock has moved into a decisive bearish bias for the first time in over five years.

We observed that the market formed two bull traps in March and June, as it rejected further buying momentum. However, a potential bear trap could form at the current bottom.

Our reverse cash flow valuation model indicates that the market could be preparing for a steeper sell-off to moderate its valuation, given slower topline growth.

Therefore, we revise our rating from Strong Buy to Buy. However, given its bearish bias and the market's rejection of buying momentum, we urge investors to layer in with caution at the current levels.