AMD bounced off support 100 MA Weekly
Sharing a trade idea for today Aug 30th.
AMD daily candles
When AMD last reported earnings on August 1, 2023, the stock did trade up to as high as $120 in after hours, but fell 7% the next day together with the broader market.
AMD revenue for Q2 2023 was $5.36 billion, beating estimates by $34.58 million, while normalised EPS came in at $0.58 per share, beating estimates by $0.01.
On a technical analysis, based on Tuesday's price action, the stock has found support at $99.50, and also after a 61.8% Fibonacci retracement of its move from $80 to $130 between May & July. Additionally, $100 was the previous resistance in March, and it is now likely turned into support. Morningstar has a fair value of $130 on AMD.
AMD weekly candles
Looking at the weekly chart, the 100 moving average on the weekly candles was previously a resistance, and now is likely to turn into support.
But AMD is not Nvidia
However do note that I do not think AMD is close to matching the gains made on Nvidia, based on a poorer ROE of -0.05% & ROIC of -0.08%.
Below I share from Gurufocus on AMD & Nvidia's profitability metrics. I would take the current weakness in AMD's price action as an opportunity to make a short term trade, and take profits when it hits $130 (previous swing high in July).
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Does anyone know why AMD is at $109. This senseless stock goes up and down for no apparent reason. I already lost tons of money on this stupid stock, why can't it make up it's mind. May be on Monday it will take a dive.
Amd vs Nvda seems like an old algebra problem. Amd train is two miles behind Nvda train. How long for two trains to be at the same point if amd is traveling at 80 mph and the nvda train is traveling at 90 mph.
i am the proud owner of 5310 shares of amd at a cost of $3.25 and will not sell a single share for 10 years !
The AMD 2.5 months of downtrend should be reversed at about this time based on recent news and its chart. Investors should add more shares now!!!
very low volume. AMD needs a breakout to the upside for multiple days on above average volume for investors to start believing again in the stock.
I sold my stock pile just over $126... I don't thin we will hit that again till late 2024
Except for AI chips, the whole semi sector is in fact over supplied. All companies are cutting expenditures.
Very few Data Centers have AMD GPU's and still less want the MI300. Very little demand for MI300.
AMD has become so lucrative for Short sellers they are now able to take every other day off
Nice move for AMD today with Nasdaq flat. Nvidia was red. AVGO was down 5%.
AMD will Really mess up your portfolio especially when the Market is Flying
the analysts and retail people can still hype AMD AI.