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Advanced micro-systems
Advanced micro-systems
AMD
$ 0.55
0.61%
23%
IBD Stock Analysis
- The stock formed a cup base with handle with a buy point of 95.54
- Aggressive investors might see it as a double bottom with an entry of 89.30
- The composite score is the best possible of 99; The relative strength is 65 out of 99
Classification of industrial groups
Emerging model
Mug with handle
* No real-time data. All displayed data was captured as of 1:08 p.m. EDT on 7/13/2021.
Advanced micro-systems (AMD) is IBD title of the day as chipmaker gains processor market share at the expense of industry leader Intelligence (INTC). AMD stock is approaching a buy point ahead of its second quarter earnings report.
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In the afternoon of trading today, AMD stock rose 0.5% to 91.26. It formed a cup base with handle with a buy point of 95.54, according to a weekly chart on IBD’s MarketSmith.
AMD’s stock has consolidated into a cup base over the past 26 weeks. However, aggressive investors might view AMD’s chart as a double bottom base with an entry point of 89.30. Regardless, the grip offers a new entry into AMD’s chart.
The next potential catalyst for AMD stock is the release of the company’s June quarter results, expected in late July.
Chipmaker is limited by supply
Raymond James analyst Chris Caso isn’t expecting much from AMD’s Q2 report as the company is constrained by supply at its subcontractor. Foundry Semiconductor manufacturing in Taiwan (TSM) produces the chips designed by AMD.
“The near-term upside potential depends much more on the company’s ability to secure additional supply, rather than any change in demand,” Caso said in a note to clients on Tuesday.
He believes that AMD stock is outperforming, or buying, for its long-term outlook.
Caso expects AMD to continue to take market share from Intel in personal computer and server central processing units. Intel has struggled with next-gen chips, as evidenced by a recent delay in its new server chips.
AMD stock has the highest possible composite rating
Advanced Micro Devices has a mediocre IBD Relative Strength rating of 65 out of 99. The Relative Strength rating shows how a stock’s price performance compares to all other stocks over the past 52 weeks. The best growth stocks generally have an RS rating of at least 80.
However, AMD stock has the best possible IBD Composite Rating of 99. The IBD Composite Rating combines five distinct proprietary ratings into one easy-to-use rating. The best growth stocks have a composite rating of 90 or better.
In a positive sign, AMD has an IBD Accumulation / Distribution Index of B +. This indicates the institutional purchase of shares.
AMD stock is on the IBD Big Cap 20.
Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technology, software, and semiconductor stocks.
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