Company Description: Advanced Micro Devices, Inc. (AMD) engages in the design, manufacture, and marketing of industry-standard digital integrated circuits worldwide. The company offers microprocessors, flash memory devices, and embedded microprocessors. The microprocessor products are used in desktop and mobile personal computers, servers and workstations, and chipset products. The flash memory products are used in mobile telephones, consumer electronics, automotive electronics, networking equipment, and other applications. The embedded microprocessors are used in personal connectivity devices and specific consumer markets. AMD’s customers include original equipment manufacturers and third-party distributors. The company markets its products through direct sales force, third-party distributors, and independent sales representatives. It operates primarily in the United States, as well as in Europe and Asia. Advanced Micro Devices was founded in 1969 and is headquartered in Sunnyvale, California.

Our Analysis: The shares of 'Advanced Micro Devices 'AMD' have been moving higher since mid-October and recently closed above short-term upside resistance. The shares of 'AMD' are component of the Philadelphia Semiconductor Index 'SOX' which recently generated a buy signal with our technical indicators. The shares of 'AMD' are in the process of completing what is referred to as a "cup & handle" pattern. The shares of 'AMD' should continue to move higher and test $25.66/share, which is their yearly closing high and will complete the handle portion of the pattern. If the shares of 'AMD' close above that level then I expect them to continue to move higher and test $30.32/share. On a longer term basis the shares of 'AMD' have completed the "cup" portion with a measured move to $35.54/share. I see downside support on the shares of 'AMD' at $23.85/share, and have set our stops accordingly at $23.44/share.