Analysts expect this chipmaker to grow 34.8% next year.
Advanced Micro Devices, Inc. (AMD)
From Shortex Market Letter
TODAY’S PRICE: $16.20*
52 week high 34.14, 52 week low 9.04
Market Cap: $16.19B, EPS: 0.31, P/E: 52.43 Beta: 5.09
Chipmaker Advanced Micro Devices, Inc. (AMD) has benefited from its graphic processing units (GPUs) and has made significant inroads in its cloud data processors for Amazon’s Web Services (AWS) and Microsoft’s Azure. AMD is posing a significant challenge to Intel (INTC) with its data center’s chips, due to AMD’s single socket boards and lower prices, which is a plus in the current memory market environment. Q4-18 earnings estimate could increase substantially with the introduction of new products within its Computing and Graphics segment and its Ryzen CPUs.
Technical Picture: AMD is in a correction /retraction mode, where stock price ebbed at (32-34) area, as the daily On-Balance-Value (OBV) is in declining retraction mode. Sellers are showing their shift toward a downside pattern, and should expect a long consolidation pattern in the current area. Exhaustion of selling makes room for MACD oscillator: (31-27) to (27-25) to (25-22). Plunging (23-19). Reversal met resistance at 50-DMA (23-24). Sinking through 200-DMA: (23-20) to (20-18) to (18-16). Reversal to challenge its primary resistance at (18-19) and secondary resistance at (22-23). Volatile.
Recommendation:
BUYING RANGE: 15-19
NEAR TERM OBJECTIVE: 23
INTER MED OBJECTIVE: 28
STOP LOSS: 14.81
*Price as of intraday 12/26/18
Joseph Parnes, Shortex Market Letter, www.shortex.com, 800-877-6555, December 29, 2018