Advanced Micro Devices
Advanced Micro Devices
IBD Stock Analysis
- Stock has formed a cup-with-handle base with buy point of 95.54
- Aggressive investors could view as a double-bottom with 89.30 entry
- Composite Rating is best-possible 99; Relative Strength is 65 of 99
Industry Group Ranking
Cup with Handle
* Not real-time data. All data shown was captured at
1:08PM EDT on
Advanced Micro Devices (AMD) is the IBD Stock Of The Day as the chipmaker gains processor market share at the expense of industry leader Intel (INTC). AMD stock is nearing a buy point ahead of its second-quarter earnings report.
In afternoon trading on the stock market today, AMD stock rose 0.5% to 91.26. It has formed a cup-with-handle base with a buy point of 95.54, according to a weekly chart on IBD’s MarketSmith.
AMD stock has been consolidating in a cup base for the past 26 weeks. However, aggressive investors could view AMD’s chart as a double-bottom base with an entry point of 89.30. Even so, the handle offers a new entry in AMD’s chart.
The next potential catalyst for AMD stock is the company’s June-quarter earnings release, expected in late July.
Chipmaker Is Supply-Constrained
Raymond James analyst Chris Caso doesn’t expect much from AMD’s second-quarter report since the company is supply-constrained at its contract manufacturer. Foundry Taiwan Semiconductor Manufacturing (TSM) produces the chips that AMD designs.
“The potential for upside in the near term is much more dependent on the company’s ability to secure incremental supply, rather than any changes in demand,” Caso said in a note to clients Tuesday.
He rates AMD stock as outperform, or buy, for its long-term prospects.
Caso expects AMD to continue to take market share from Intel in central processing units for personal computers and servers. Intel has struggled with next-generation chips as evidenced by a recent delay in its new server chips.
AMD Stock Has Best-Possible Composite Rating
Advanced Micro Devices has a mediocre IBD Relative Strength Rating of 65 out of 99. The Relative Strength Rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks. The best growth stocks typically have RS Ratings of at least 80.
However, AMD stock has a best-possible IBD Composite Rating of 99. 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.
In a positive sign, AMD has an IBD Accumulation/Distribution Rating of B+. That indicates institutional buying of shares.
AMD stock is on the IBD Big Cap 20.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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