Ahead of Earnings, Everybody Loves AMD Stock

• Advanced Micro Devices (AMD) is trading at new all-time highs and has technical momentum.
• Shares are up more than 60% over the past year and more than 100% in the year to date.
• AMD has a 100% “Buy” opinion from Barchart.  
• Analyst sentiment is overwhelmingly positive, with multiple “Strong Buy” ratings and price targets ranging from $180 to $860.

Today’s Featured Stock

Valued at $412 billion, Advanced Micro Devices (AMD) a broad portfolio of high-performance and adaptive processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs and deep software expertise. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AMD checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct. 6, the stock has gained 26.66%.

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www.barchart.com

Barchart Technical Indicators for Advanced Micro Devices

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Advanced Micro Devices hit an all-time high of $264.58 in intraday trading on Oct. 28.

• AMD has a Weighted Alpha of +110.63.
• Advanced Micro Devices has a 100% “Buy” opinion from Barchart.
• The stock gained 61.34% over the past year.
• AMD has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $258.01 with a 50-day moving average of $185.70.
• Advanced Micro Devices has made 10 new highs and gained 61.8% in the last month.
• Relative Strength Index (RSI) is at 73.63.
• There’s a technical support level around $255.15.

Don’t Forget the Fundamentals

• $421 billion market capitalization.
• 94.02x trailing price-earnings ratio.
• Revenue is projected to grow 28.28% this year and another 27.27% next year.
• Earnings are estimated to increase 18.90% this year and an additional 59.47% next year.

Analyst and Investor Sentiment on Advanced Micro Devices

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are high on AMD and so is everyone else.

• The Wall Street analysts tracked by Barchart have issued 30 “Strong Buys,” 2 “Moderate Buys” and 12 “Hold” opinions on the stock with price targets between $180 and $310.
• Value Line rates the stock “Highest” with a price target of $284 and comments: “Even after recent price appreciation, these timely shares will likely interest growth investors. We continue to view AMD as a core AI play with a resilient market footing and solid earnings upside over the long term.”
• CFRA’s MarketScope Advisor rates it a “Strong Buy” with a price target of $860 and comments: “Our Strong Buy reflects AMD’s potential to close the gap with NVIDIA through accelerated AI hardware roadmap and expanding customer base for AMD’s accelerators.”
• Morningstar thinks the stock is fairly valued and comments: “We’ve long believed that AMD will carve out a piece of the AI pie. This deal suggests that AMD’s slice of the market might be a bit higher than expected.”
• 8,612 investors following the stock on Motley Fool think the stock will beat the market while 2,533 think it won’t.
• 562,850 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold” and comments: “The company’s recent deals with OpenAI and Oracle have reinforced AMD’s credibility in the AI market, suggesting substantial growth potential in AI GPU sales.”

The Bottom Line on Advanced Micro Devices

Wall Street Analysts and just about everyone else think this stock has more ahead of it.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.