Sign InAMD Stock Forecast: Steady Growth Expected Amid Positive Analyst Ratings and Industry Outlook
Summary
The analysis on October 9, 2023, suggests that the stock of Advanced Micro Devices (AMD) will remain steady within a support-resistance range, with a slightly positive increase expected due to increased interest and favorable analyst recommendations.
Introduction
Advanced Micro Devices, Incorporated (AMD) last closed at $107.24 on October 6, 2023, recording a change of $4.33 (an increase of 4.21%). Its low price was recorded at $102.07, while it reached a high of $107.87.
Trends and Indicators
AMD stock technical analysis exhibits a Relative Strength Index (RSI14) of 58, indicating neutral market conditions. The MACD at -3.17 is negative, implying weak momentum. The 50 Day Moving Average is at $106.28, while the 200 Day Moving Average stands at $96.62, both close to the current price; its price action has been relatively steady.
The Trend Strength Indicator (ATR) is 3.70, indicating moderate volatility. AMD has support at $106.59, a point that it recently tested, and resistance at $109.35, making this a crucial range for the stock.
This year, AMD's low and high were $54.57 and $132.83 respectively; its current price is close to the upper end of this range. This suggests a bull market for AMD, at least in the medium to long-term perspective.
Volume Analysis
The stock's recent trading volume was 64.13 million, slightly higher than the average volume of 59.84 million, indicating increased interest and investor activity in the stock.
Financial Analysis
The EPS is -$0.04, and the P/E ratio is reported as -2681. Unfortunately, this negative earnings statistic is a concern and requires close monitoring. The market capitalization for AMD is $173.26 billion. The number of outstanding shares is 1.62 billion.
Analysts' Ratings and Future Predictions
A Discounted Cash Flow (DCF) analysis values the stock at $110.32, suggesting it is slightly undervalued at the current price. Furthermore, the stock's target consensus is $118.77, with a high target of $225, a median target of $108, and a low target of $65. A majority of analysts (24 out of 28) rate AMD as a 'buy' with no 'sell' recommendations, lending a high level of confidence.
The earnings announcement is expected on October 30, 2023, which could result in significant price movements depending on the accrual results.
Recent News Analysis
AMD is labeled as a most-watched stock, raising investors' expectations as demand for its products grows. This has seen the stock receive a lot of attention lately.
A significant development is the delay in Advanced Micro Devices' AI market share gains, leading to a slashed price target from $170 to $125. However, analysts retained their 'Outperform' rating for AMD, which suggests confidence in its long-term performance.
Looking ahead, Advanced Micro Devices is expected to gain from the flux in the gaming market with giants such as Apple and Microsoft making significant moves. The semiconductor industry as a whole is anticipated to soar, a positive indication for AMD .
Conclusion
Based on the above analysis, the forecast for October 9, 2023, predicts the price will remain steady within the support-resistance range, between $106.59 and $109.35, pending more significant news or events. Looking forward to the week ahead, the prediction leans more bullish, expecting a slightly positive increase due to the stirred interest and favorable analyst recommendations.
The stock of Advanced Micro Devices, Inc. (AMD) is classified as a 'Buy'. The assessment is based on the stock's room for growth according to the consensus price target, the positive long-term industry outlook, recent buy ratings by analysts, and the potential for upcoming positive earnings results, despite some risks such as delayed AI market share gains and currently negative earnings per share. It appears prudent for investors to monitor the stock closely for potential investment opportunities, but with keen recognition of the risks mentioned.
