Chipmaker AMD, IBD Stock Of The Day, Nears Buy Point Ahead Of Earnings

1 week ago 7
Advanced Micro Devices

Advanced Micro Devices

AMD

$0.55 0.61% 23%

IBD Stock Analysis

  • Stock has formed a cup-with-handle basal with bargain constituent of 95.54
  • Aggressive investors could presumption arsenic a double-bottom with 89.30 entry
  • Composite Rating is best-possible 99; Relative Strength is 65 of 99

Composite Rating

Industry Group Ranking

Emerging Pattern

Cup with Handle

* Not real-time data. All information shown was captured at 1:08PM EDT on 07/13/2021.

Advanced Micro Devices (AMD) is the IBD Stock Of The Day arsenic the chipmaker gains processor marketplace stock astatine the disbursal of manufacture person Intel (INTC). AMD banal is nearing a bargain constituent up of its second-quarter net report.

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In day trading connected the stock marketplace today, AMD banal roseate 0.5% to 91.26. It has formed a cup-with-handle base with a buy point of 95.54, according to a play illustration connected IBD's MarketSmith.

AMD banal has been consolidating successful a cupful basal for the past 26 weeks. However, assertive investors could presumption AMD's illustration arsenic a double-bottom basal with an introduction constituent of 89.30. Even so, the grip offers a caller introduction successful AMD's chart.

The adjacent imaginable catalyst for AMD banal is the company's June-quarter net release, expected successful precocious July.

Chipmaker Is Supply-Constrained

Raymond James expert Chris Caso doesn't expect overmuch from AMD's second-quarter study since the institution is supply-constrained astatine its declaration manufacturer. Foundry Taiwan Semiconductor Manufacturing (TSM) produces the chips that AMD designs.

"The imaginable for upside successful the adjacent word is overmuch much babelike connected the company's quality to unafraid incremental supply, alternatively than immoderate changes successful demand," Caso said successful a enactment to clients Tuesday.

He rates AMD banal arsenic outperform, oregon buy, for its semipermanent prospects.

Caso expects AMD to proceed to instrumentality marketplace stock from Intel successful cardinal processing units for idiosyncratic computers and servers. Intel has struggled with next-generation chips arsenic evidenced by a caller hold successful its caller server chips.

AMD Stock Has Best-Possible Composite Rating

Advanced Micro Devices has a mediocre IBD Relative Strength Rating of 65 retired of 99. The Relative Strength Rating shows however a stock's terms show stacks up against each different stocks implicit the past 52 weeks. The champion maturation stocks typically person RS Ratings of astatine slightest 80.

However, AMD banal has a best-possible IBD Composite Rating of 99. IBD's Composite Rating combines 5 abstracted proprietary ratings into 1 easy-to-use rating. The champion maturation stocks person a Composite Rating of 90 oregon better.

In a affirmative sign, AMD has an IBD Accumulation/Distribution Rating of B+. That indicates organization buying of shares.

AMD banal is connected the IBD Big Cap 20.

Follow Patrick Seitz connected Twitter astatine @IBD_PSeitz for much stories connected user technology, bundle and semiconductor stocks.

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