AMD has been one of my fav Buy and Ride stock since 2018 when it used to trade near $10. I gave a recent buy recommendation again when the stock was trading near $51 in July. The stock rallied to $100 but it has been underperforming since then. What’s happening with the stock?
AMD recent earnings report:
AMD came out with an earnings report on January 27, 2020. The company’s revenue surged 53% year over year to $3.2 billion. The EPS growth +63%. AMD processors now are the top choice whether it is gaming consoles or cloud servers.
AMD has been grabbing market share from Intel and that’s the reason why the stock has done so well. I consider this a core Buy and Hold stock and buy on every decline stock.
Where is the support for AMD?
AMD is a $103 billion market cap company
One can say: AMD stock took support at $74 and rallied to $100 OR the stock took support at 100-day moving average and rallied.
AMD is now at 100 dma (100 dma = 86). The big question: Where should one buy?
At this point in time, we don’t know whether AMD will take support here at 100 dma ($86) or decline and take support at 200 dma ($74). Here’s what I would recommend:
If you already own AMD, then the best place to add more would be $74 which also coincides with 200 dma.
If you don’t have AMD, then one should buy here at 100 dma/85-86 and add again if it slips to $74.
AMD is a $100 billion company with enormous growth potential in a world that’s digitizing at an incredible pace. It is a must-have stock in the portfolio.
You never know what can drive stock higher
AMD inside Tesla 🙂
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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