AMD stock: buy or sell?
Dec 1st, 2020
AMD stock brief
- AMD closed on Tuesday at $92.63 after slightly moving a -0.03% breaking a streak of 3 sessions in positive.
- The price is currently above the upper Bollinger band, which often indicates a near-term correction
- On Monday broke out above its latest top at $88.72
- Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom.
Should I buy AMD stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AMD stock a buy?
Currently, AMD stock matches one trading strategy:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it rises fast. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 1.78% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $94.28. The stop loss would be ordered at $84.85
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$94.28||$84.85||10.00%|
Should I sell AMD stock?
Do you know when is it time to sell AMD stock?. Trading strategies help us to avoid rash decisions based on our personal sentiments or the noise surrounding the market. When selling, as well as buying, our setups are very simple to use and are only valid for selling stocks in your porfolio, not for shorting AMD stock
A golden rule is that you should never keep an open trade that produces greater losses than those expected upon the buy. When to sell shares always has to be ruled by the stop-loss (automatic or manual)
Is it time to sell AMD stock?
Currently, AMD stock doesn't match any of our preferred sell setups, so if you hold AMD stock and your operation is in profit probably is not time to sell now
In the last 30 days, 4 analyst ratings were published for AMD
|Nov 4th, 2020|
|The Goldman Sachs Group|| Neutral → |
|Nov 6th, 2020|
|Wells Fargo & Company|
|Nov 16th, 2020|
|Cleveland Research|| Neutral → |
|Nov 23rd, 2020|
|Royal Bank of Canada||Neutral|
AMD stock analysis
Supports and resistances
The current resistances are:
The current supports are:
When the price moves out of the band (above the upper line or below the lower line) it signals that the price is currently having a very strong trend and therefore can reverse the trend to the average. In this case, the price is over the upper band, meaning a short-term adjustment (at least) until it is under the band
Relative strength index
The has been between the the levels of 30 and 70 for some weeks, and therefore, without this indicator really being helpful in making any decisions.
AMD stock price history
AMD went public on Mar 17th, 1980 at $0.00 per share1. Since then, AMD stock has risen by -, with an average of 0.00% per year. An investment of thousand dollars on the IPO would have a value of $inf nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for AMD stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.
Along with buy or sell recommendations, financial institutions release their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial data by the company, and many times. Again, these targets are not direct recommendations for individual investors and should not be trusted blindly.
Averaging all price targets exposed below, the forecasted price for AMD stock is $98.67. AMD closed at $92.63 on Tuesday, so the target price is expecting an increase by 6.52%.
|Brokerage firm||Price target|
|Nov 4th, 2020|
|The Goldman Sachs Group||$84.00 → $96.00|
|Nov 6th, 2020|
|Wells Fargo & Company||$82.00 → $100.00|
|Nov 16th, 2020|
|Cleveland Research||Not available|
|Nov 23rd, 2020|
|Royal Bank of Canada||$92.00 → $100.00|
Earnings and financials
AMD ($AMD) had the quarterly shareholders event and posted the report last October. AMD beat market estimates and reported of $0.41, that is a 17.14% increase versus the predictions of $0.35. In line, reported sales were $2.8 billion compared to estimates of $2.6 billion.This compares to Earnings of $0.18 per share same quarter last year, so reported EPS means an improvement of 127.78%. Revenue exploded a 55.52% on an annualized basis in the , from $18.0B to $28.0B last quarter.
AMD ($AMD) is hosting the Q4 earnings call late next January. Analysts estimate of $0.46, that is a 12.20% higher than Q3.
AMD is part of the Technology sector and the Semiconductors industry, where it has 47 industry peers.
AMD biggest competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Taiwan Semiconductor ($TSM)||$419.8B||Neutral||0|
|Texas Instruments ($TXN)||$145.5B||Neutral||0|
1 In the last 30 days.
To better understand AMD performance you must compare its gains with other related stocks in same sector or industry.. For AMD, the benchmark is made against Taiwan Semiconductor, NVIDIA, Intel, Qualcomm, Broadcom and Texas Instruments.
|Taiwan Semiconductor ($TSM)||14.90%||21.70%||86.60%|
|Texas Instruments ($TXN)||11.20%||13.60%||29.10%|
Disclaimer:The viewpoints contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the individual circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for educative reasons only
|Tuesday, December 1st, 2020|
|Day range||$90.78 - $93.89|
|Average true range||$3.45|
|50d mov avg||$82.08|
|100d mov avg||$79.26|
|200d mov avg||$65.05|
|Earnings date||January 26th, 2021|