Sign InSummary
AMD's stock closed at $110.17 on June 28, 2023, experiencing a minor decrease, but with overall strong performance and positive indicators, including the recent successful acquisition of Xilinx and potential bullish trend, it is predicted that the stock might see a slight increase in the next trading day and continue an upward trajectory in the upcoming week, making it a 'Buy'.
Company Overview and Performance
Advanced Micro Devices, Inc. (AMD) is a multinational semiconductor company listed on the NASDAQ exchange. Closed at a price of $110.17 on June 28, 2023, the stock has seen a minor decrease of -0.20% from the previous day, with a -0.22 point change. Despite this, the company has experienced an overall strong performance, with a market cap of approximately $177.41 billion.
Trading Volume and Momentum
The trading volume for AMD on the last trading day was around 66.66 million shares, slightly lower than its average volume of 67.62 million shares. Notably, the movement of AMD's relative strength index (RSI) of 41 points toward a neutral position, potentially indicating balanced momentum.
In terms of moving averages, AMD is currently outperforming both its 50 day moving average ($105.39) and its 200 day moving average ($82.44), adding to its positive momentum. The MACD (Moving Average Convergence Divergence) of 3.93 supports the bullish narrative, indicating a sustained upward trend.
Fundamental Analysis
Having a price to earnings ratio (PE) of 612.06 and an earnings per share (EPS) of $0.18, AMD currently enjoys a favorable position. In addition, the announcement of their earnings is expected on July 31, 2023, which could create significant market movement for their stock. The company's discounted cash flow (DCF) further stands at $113.25, showing that the stock is reasonably valued.
News and Future Outlook
Recent news indicates that US control over chip export may be tightened, which might affect global tech stocks, including AMD. However, it should be considered that AMD's recent successful acquisition of Xilinx has resulted in a chip that can help boost its embedded segment, which may offset potential losses from the export controls. Furthermore, AMD filled the upside price gap that occurred on May 25, indicating a potential upcoming bullish trend.
Analysts have set high and low price targets for AMD at $225 and $65 respectively, with a consensus target standing at $114.06, suggesting potential upside. The company's median target is at $102, somewhat below the latest close price.
Prediction and Final Evaluation
Considering the fundamental and technical data assessed, it is predicted that the stock price for AMD might see a slight increase in the next trading day (June 29, 2023) and continue the upward trajectory in the upcoming week, barring unexpected market influencers.
Taking into account the company's overall strong performance, positive momentum indicators, and promising recent news surrounding the company's new chip, AMD's stock would be evaluated as a 'Buy'. Investors might consider purchasing shares in AMD, understanding that there could be potential volatility due to the complex global market dynamics surrounding chip export controls.
