Sign InSummary
On June 21, 2023, Advanced Micro Devices Inc.'s stock closed at $112.11, declining by 5.73% due to several concerns, including market decline, interest rate hikes, and valuation concerns, while recent news highlights AMD's potential involvement in the AI industry and a potential deal with Amazon.
Technical Signals and Price Movement
Advanced Micro Devices Inc.'s (AMD) stock closed at $112.11 on June 21, 2023, showing a decline of -6.82 (-5.73%) from its previous close. The stock was traded at a volume of 82,475,880 shares, which was higher than its average volume of 67,970,748 shares. Among price-related data, the stock's year high is 132.83, while its year low is situated at 54.57.
Technical trading indicators show the stock's RSI14 at 44, indicating a neutral position in the market. Meanwhile, the 50-day moving average is at 103.69 and the 200-day moving average is at 81.70. The MACD (3-month) stands at 8.99. Overall, the technical signals suggest a mixed view of AMD's stock performance.
Fundamental Analysis
With a market cap of $180.54 billion, the Nasdaq-listed AMD reported an EPS of $0.18 and a PE ratio of 622.83. The company has 1.61 billion shares outstanding. According to a discounted cash flow (DCF) analysis, the stock is valued at $115.19, slightly above its current price.
AMD has a broad consensus target price of $114.06, with a target high of $225 and a target low of $65. The median target price is $102. The company is scheduled to announce its earnings on July 31, 2023.
Recent News and Developments
Several recent news items highlight AMD's potential growth prospects:
1. The market experienced a drop for the third straight day on June 21, 2023, as Fed's Powell indicated more interest rate hikes ahead. This development may have impacted AMD's stock performance.
2. The surging demand for artificial intelligence (AI) chips has led investors to seek semiconductor stocks, including AMD, as potential beneficiaries.
3. AMD is reportedly in talks with Amazon.com Inc. for a major deal, possibly boosting the company's outlook and reinforcing its position in the technology sector.
4. AMD is among four semiconductor stocks branded as 'The Four Horsemen of AI' by a Wall Street analyst, suggesting promising potential for the company in the AI industry.
Price Predictions and Stock Evaluation
Considering the technical signals, fundamental data, and recent news, AMD's stock price may show some short-term volatility. For the next trading day on June 22, 2023, the stock price might experience a slight rebound after the recent decline.
Over the upcoming week, the stock price may hover around its current level, driven by investor interest in AI chips and the possible deal with Amazon. However, the recent market decline and ongoing interest rate concerns may limit significant gains.
Based on the analysis, AMD's stock is currently rated as a Hold. While the company demonstrates an optimistic outlook due to its potential involvement in AI and the reported deal with Amazon, current technical signals, potential market fluctuations, and valuation concerns make it difficult to justify a strong buy or sell recommendation. Investors should monitor market conditions and news developments carefully before making a decision.
