Analysis of catalysts and favorable winds

The stock of Advanced Micro Devices (AMD) fell again after peaking at 52 weeks.

AMD stock market performance

A rise of more than 70% to a new all-time high confirmed the impressive performance of the title in the first half. However, the stock of AMD has dropped in recent weeks. The broader stock market has become bearish in the face of concerns over the global recession. The escalation of the trade war between the United States and China continued to fuel sales across the stock market.

In the context of the recent downturn, AMD fundamentals remain strong. The company had solid prospects for the third quarter. AMD also announced impressive results for the second quarter, marking a growth in its core business. While the company's second-quarter revenue decreased year-over-year (year-over-year), it expects a sequential increase of 18 percent to $ 1.8 billion.

Until now, the stock of AMD has been a bright spot in the semiconductor business. NVIDIA has warned that its revenues could fall by 9% in the third quarter. In contrast, AMD expects an increase of 9% over one year.

Perspectives of Ryzen processors

In addition to revenue growth forecasts, the launch of 2nd generation AMD EPYC processors highlights AMD's bright future. The new processors consume less power and record record performance. Processors place AMD in the face of NVIDIA and Intel for data center customers.

AMD has already contracted with Google (GOOGL) and Microsoft (MSFT) for its new EPYC processors. The two tech giants will likely use 7-nanometer chips to power their data centers because of their improved capabilities. Twitter and VMWare have also shown a keen interest in new processors. AMD's stock sentiment is expected to increase due to growing expectations of increased sales of EPYC processors.

The potential winds of the AMD stock

The escalation of the trade war between the United States and China is a major crosswind. The trade war could have an impact on the impressive AMD stock race. Trade tensions will likely have an impact on AMD chip production. Tensions could hurt the company's demand and sales. The global economic recession could result in low demand for new chips in the company. Companies could slow down the construction of new data centers.

Due to strong fundamentals and favorable winds, AMD's shares have an average "buy" rating. According to Nasdaq, 12 analysts consider the stock as a "buy", while 17 maintain a "hold" on it.