Advanced Micro Devices

INVESTING IN AMD STOCK 📈 Is Advanced Micro Devices A Buy? (UPDATE)

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• published: 14 Apr 2017
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Is AMD stock a buy? I invested in 500 shares of AMD stock a few months back. I am constantly getting comments about AMD stock and whether or not I still think it is a buy. Today, I will be doing an update video on AMD and going over the pros and the cons of this stock. AMD has climbed from $1.83 a share in February 2016 to a high of $15.20 a share in February 2017. The Ryzen 7 and Ryzen 5 CPU’s have been released, and the Ryzen 3 CPU as well as the Vega GPU are going to be released in Q2 2017. Recently, we have seen a pullback in AMD stock as it fell below the 50 day simple moving average after the bearish Goldman Sachs call. Should investors buy the dip, hold their positions or sell? Pros of Advanced Micro Devices 1. Ryzen CPU Launch The long awaited Ryzen CPU has been launched. The next quarter will be the first quarter showing revenue from the new hardware line. Ryzen has close to a 50% price advantage over the competitor Intel in the high end CPU market. This gives AMD a fighting chance of regaining market share. The Ryzen launch was lukewarm, as performance issues impacted operations with Windows 10 and gameplay performance lagged. An upgrade to the chip resulted in a 21% gameplay performance improvement. If Ryzen gains market share and AMD turns a profit, the stock will likely soar. 2. Potential for a Short Squeeze As of March 31st, short interest on AMD stock is 111,319,217 shares. That is a short interest of 12%, meaning 12% of investors are bearish or betting on the stock to go down in value. Short interest on AMD has been climbing due to the rally over the last 15 months. The short interest positions held by bears will fuel the rally of the stock if all goes well. If Ryzen is a hit, and AMD turns a profit on upcoming earnings reports the stock will likely gap open on this news triggering an explosive bullish price move as bears scramble to cover short positions. 3. AMD is back on the S&P; 500 The S&P; 500 index officially added AMD to its 500 member companies in March of this year. This is a bullish sign for the stock. AMD was removed from the S&P; 500 back in 2013 due to declining market capitalization. With Vanguard alone, there is approximately $1 Trillion invested in funds tracking the S&P; 500 index. Due to the newfound index status, AMD is receiving backing along with the other S&P; 500 linked assets. Passive index investors are allocating millions in AMD stock, be it directly or indirectly. Cons of Advanced Micro Devices 1. Bearish Goldman Sachs Call AMD stock was trading around $14.50 a share. Goldman Sachs initiated a sell rating, resulting in the recent dip in the stock price. Goldman analysts believe AMD is priced for perfection and that the rally cannot be sustained. Many of us, including analysts at Barron’s, disagree entirely with the bearish call on AMD by Goldman. Nonetheless, this has changed the overall investor sentiment of the stock. 2. AMD might be Overvalued We can all agree that AMD stock was severely undervalued when it fell below $5 a share. However, AMD may have climbed to the other end of the spectrum to where it may be overvalued now. AMD has not turned a net profit since 2011. Their peak earnings per share was $0.66 this century. Currently, AMD stock is valued around $15 a share on the upper end. If they match their record earnings per share, that is a price to earnings ratio of 23. AMD stock is also diluted. Ten years ago, they had 547 million shares outstanding. Today, they have 941 million shares outstanding. 3. Intel likely has Wiggle Room Intel is dominating the CPU market and AMD is experiencing a competitive improvement. Intel has had no competition as AMD fell out of favor. Intel was able to name their price. If AMD becomes a threat to Intel, they will likely lower their prices to compete with AMD. The main problem with AMD is that they have been in a perpetual state of catching up to Intel. The next generation of CPU architecture from Intel will likely allow them to regain a lead on AMD. Is this rally for AMD temporary? These are the major pros and cons of AMD stock. Many investors have already made serious gains on this stock, and I believe there is still room for this stock to grow. I am holding my position of AMD stock that I picked up at a share price of $12.06 a share. I am bullish on AMD. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Articles: AMD: Stay the Course (Barron's Response to Goldman) http://blogs.barrons.com/techtraderdaily/2017/04/06/amd-stay-the-course/ Goldman Sachs Sell Call https://www.streetinsider.com/Analyst+Comments/Goldman+Sachs+Starts+AMD+(AMD)+at+Sell/12752325.html

INVESTING IN AMD STOCK 📈 Is Advanced Micro Devices A Buy? (UPDATE)

• Report rights infringement
• published: 14 Apr 2017
• views: 357

Is AMD stock a buy? I invested in 500 shares of AMD stock a few months back. I am constantly getting comments about AMD stock and whether or not I still think it is a buy. Today, I will be doing an update video on AMD and going over the pros and the cons of this stock. AMD has climbed from $1.83 a share in February 2016 to a high of $15.20 a share in February 2017. The Ryzen 7 and Ryzen 5 CPU’s have been released, and the Ryzen 3 CPU as well as the Vega GPU are going to be released in Q2 2017. Recently, we have seen a pullback in AMD stock as it fell below the 50 day simple moving average after the bearish Goldman Sachs call. Should investors buy the dip, hold their positions or sell? Pros of Advanced Micro Devices 1. Ryzen CPU Launch The long awaited Ryzen CPU has been launched. The next quarter will be the first quarter showing revenue from the new hardware line. Ryzen has close to a 50% price advantage over the competitor Intel in the high end CPU market. This gives AMD a fighting chance of regaining market share. The Ryzen launch was lukewarm, as performance issues impacted operations with Windows 10 and gameplay performance lagged. An upgrade to the chip resulted in a 21% gameplay performance improvement. If Ryzen gains market share and AMD turns a profit, the stock will likely soar. 2. Potential for a Short Squeeze As of March 31st, short interest on AMD stock is 111,319,217 shares. That is a short interest of 12%, meaning 12% of investors are bearish or betting on the stock to go down in value. Short interest on AMD has been climbing due to the rally over the last 15 months. The short interest positions held by bears will fuel the rally of the stock if all goes well. If Ryzen is a hit, and AMD turns a profit on upcoming earnings reports the stock will likely gap open on this news triggering an explosive bullish price move as bears scramble to cover short positions. 3. AMD is back on the S&P; 500 The S&P; 500 index officially added AMD to its 500 member companies in March of this year. This is a bullish sign for the stock. AMD was removed from the S&P; 500 back in 2013 due to declining market capitalization. With Vanguard alone, there is approximately $1 Trillion invested in funds tracking the S&P; 500 index. Due to the newfound index status, AMD is receiving backing along with the other S&P; 500 linked assets. Passive index investors are allocating millions in AMD stock, be it directly or indirectly. Cons of Advanced Micro Devices 1. Bearish Goldman Sachs Call AMD stock was trading around $14.50 a share. Goldman Sachs initiated a sell rating, resulting in the recent dip in the stock price. Goldman analysts believe AMD is priced for perfection and that the rally cannot be sustained. Many of us, including analysts at Barron’s, disagree entirely with the bearish call on AMD by Goldman. Nonetheless, this has changed the overall investor sentiment of the stock. 2. AMD might be Overvalued We can all agree that AMD stock was severely undervalued when it fell below $5 a share. However, AMD may have climbed to the other end of the spectrum to where it may be overvalued now. AMD has not turned a net profit since 2011. Their peak earnings per share was $0.66 this century. Currently, AMD stock is valued around $15 a share on the upper end. If they match their record earnings per share, that is a price to earnings ratio of 23. AMD stock is also diluted. Ten years ago, they had 547 million shares outstanding. Today, they have 941 million shares outstanding. 3. Intel likely has Wiggle Room Intel is dominating the CPU market and AMD is experiencing a competitive improvement. Intel has had no competition as AMD fell out of favor. Intel was able to name their price. If AMD becomes a threat to Intel, they will likely lower their prices to compete with AMD. The main problem with AMD is that they have been in a perpetual state of catching up to Intel. The next generation of CPU architecture from Intel will likely allow them to regain a lead on AMD. Is this rally for AMD temporary? These are the major pros and cons of AMD stock. Many investors have already made serious gains on this stock, and I believe there is still room for this stock to grow. I am holding my position of AMD stock that I picked up at a share price of $12.06 a share. I am bullish on AMD. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Articles: AMD: Stay the Course (Barron's Response to Goldman) http://blogs.barrons.com/techtraderdaily/2017/04/06/amd-stay-the-course/ Goldman Sachs Sell Call https://www.streetinsider.com/Analyst+Comments/Goldman+Sachs+Starts+AMD+(AMD)+at+Sell/12752325.html