Advanced Micro Devices
Advanced Micro Devices
IBD Stock Analysis
- AMD stock rebounded from its 50-day moving average line
- Aggressive investors could have used 106.98 as an entry point
- AMD is forming a double-bottom base with a 114.59 buy point
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:00PM EDT on
On the stock market today, AMD stock rose 2.2% to 108.16. Earlier in the session, it climbed as high as 108.44.
Aggressive investors could have used 106.98 as an entry point. That’s just above last Thursday’s high.
AMD Stock Forming Double-Bottom Base
Santa Clara, Calif.-based AMD competes with Intel (INTC) in making central processing units, or CPUs, for personal computers and servers. It also rivals Nvidia (NVDA) in the market for graphics processing units, or GPUs, for PCs, gaming consoles and data centers.
AMD’s Prospects ‘Looking Very Solid’
On Thursday, Piper Sandler analyst Harsh Kumar reiterated his overweight, or buy, rating on AMD stock. He also raised his price target to 120 from 110.
“In our view, AMD is looking very solid into year-end,” Kumar said in a note to clients.
AMD is well-positioned as enterprise spending returns, which should boost PC and server sales, Kumar said.
Meanwhile, the company’s planned acquisition of Xilinx (XLNX) remains on track to close by the end of the year, he said.
“Overall, we expect AMD to continue to take share in the server and enterprise PC markets, as it continues to introduce new products and generate design wins,” Kumar said.
Tied For First Place In Industry Group
AMD stock has a best-possible IBD Composite Rating of 99, according to IBD Stock Checkup. It is tied for first place in IBD’s fabless semiconductor industry group. Five other stocks in the group have Composite Ratings of 99 as well. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
The fabless semiconductor industry group ranks fourth out of 197 industry groups that IBD tracks. Three months ago, it ranked No. 79. And six months ago, it ranked No. 133.
AMD stock has an IBD Relative Strength Rating of 84. That means it has outperformed 84% of stocks over the past 12 months.
The next major catalyst for AMD stock could be the company’s fiscal third-quarter earnings report, due in late October.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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