Despite a seemingly impressive Q3, AMD stock dropped 26% in one week's time. AMD reported revenue of $1.61 B ($1.51 B expected) and non-GAAP EPS of $.12 ($.10 expected). However, management guided that Q4 revenue would fall by 15% (+ or - 3%) and gross margins (35%) would remain flat. A change in market sentiment and weak guidance led to a 26% decline. All things considered, 2017 revenue increased by 25% YoY while the stock is up nearly 5% since 2017. AMD shares rebounded on news of AMD-Intel partnership which will allow AMD to compete with Nvidia in the (shrinking) laptop chip market via GPU's. This market sentiment shift along with oversold technical indicators (Stochastic RSI & trend line support) make AMD an easy buy. Strong fundamentals, oversold technicals, and a positive news story suggest AMD moving higher to the top of its range.
Seeking to add more on weakness with profit target near $14. Stop loss would be placed near prior swing low of $10.70
Seeking to add more on weakness with profit target near $14. Stop loss would be placed near prior swing low of $10.70