AMD: Buy Before It's Gone Again (Rating Upgrade)

Seeking Alpha2023-06-28

SummaryAdvanced Micro Devices buyers who chased its May surge have been punished. I cautioned previously that its valuation and price action were no longer constructive.AMD has pulled back nearly 20% ...

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吉祥TC
2023-06-28
吉祥TC
Good entry price below 100

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I cautioned previously that its valuation and price action were no longer constructive.AMD has pulled back nearly 20% ...</p>\n\n<a href=\"https://seekingalpha.com/article/4613864-amd-buy-before-its-gone-again-rating-upgrade\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMD: Buy Before It's Gone Again (Rating Upgrade)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMD: Buy Before It's Gone Again (Rating Upgrade)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-06-28 17:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4613864-amd-buy-before-its-gone-again-rating-upgrade><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAdvanced Micro Devices buyers who chased its May surge have been punished. I cautioned previously that its valuation and price action were no longer constructive.AMD has pulled back nearly 20% ...</p>\n\n<a href=\"https://seekingalpha.com/article/4613864-amd-buy-before-its-gone-again-rating-upgrade\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0127658192.USD","symbol_name":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","start_time":0,"source_url":"https://seekingalpha.com/article/4613864-amd-buy-before-its-gone-again-rating-upgrade","article_id":"2346721865","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2346721865","pubTimestamp":1687945815,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"David Becker Advanced Micro Devices, Inc. (NASDAQ:AMD) investors who chased its attempted breakout after Nvidia Corporation's (NVDA) late May surge have been battered. Since my previous update, AMD ha","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","BK4532":"文艺复兴科技持仓","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4567":"ESG概念","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","BK4534":"瑞士信贷持仓","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0541502299.USD":"ALLSPRING  EMERGING MARKETS EQUITY \"I\" (USD) ACC","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","BK4566":"资本集团","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0056508442.USD":"贝莱德世界科技基金A2","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4526":"热门中概股","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","LU0109392836.USD":"富兰克林科技股A","BK4503":"景林资产持仓","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","SG9999004220.SGD":"Nikko AM Shenton Asia Dividend Equity Fund  SGD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0878005551.USD":"UBS (LUX) KEY SELEC ASIA ALLOCATION OPPORTUNITY (USD) \"P\" (USD) ACC","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","AMD":"美国超微公司","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD"},"translate_title":"AMD：在它再次消失之前购买（评级升级）","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMD":1.1},"content_text":"SummaryAdvanced Micro Devices buyers who chased its May surge have been punished. I cautioned previously that its valuation and price action were no longer constructive.AMD has pulled back nearly 20% from its recent highs, creating another opportunity for investors to buy at more attractive levels.AMD's AI ramp remains on track, with supply chain partners corroborating the optimism.As such, investors who didn't manage to buy before the crazy surge are given another opportunity to get on board.David BeckerAdvanced Micro Devices, Inc. (NASDAQ:AMD) investors who chased its attempted breakout after Nvidia Corporation's (NVDA) late May surge have been battered. Since my previous update, AMD has significantly underperformed the S&P 500 (SP500, SPX, SPY), as dip buyers likely took profit and rotated out.It's a timely reminder for investors to consider risk/reward and price action when assessing entry opportunities. The pullback started in mid-June, as AMD's momentum was built into its highly anticipated AI event.Wall Street analysts attempted to link the lack of a flagship customer for its newly-launched MI300 series AI chips to the selloff. However, AMD also assured investors that their AI accelerators are ready for sampling in Q3 before volume production in Q4. Hence, I assessed that the reasons cited likely aren't sufficient enough to justify the pullback.Instead, my readers should recall my previous update, where I cautioned investors to be patient as AMD's valuation and price action were no longer constructive.With the steep pullback as AMD fell nearly 20% from its mid-June highs, I believe it's a reasonable time for me to provide an update on whether the current levels are attractive.I assessed that AMD's valuation is less aggressive than its frothy levels four weeks ago but still not undervalued. I gleaned that it seems, at best, fairly valued, which is also supported by Seeking Alpha Quant's valuation rating of \"C-.\"However, with industry-leading growth, profitability, and momentum grades of \"A-,\" some investors could consider the opportunity in AMD as reasonable, despite its fair valuation.I believe there are sufficient reasons for investors to pay closer attention to AMD's opportunities now. AMD highlighted that its AI chips are ready for ramp mode in Q4, suggesting that the company is confident of its roadmap in taking on market share leader Nvidia.Moreover, supply chain sources also corroborate the confidence in CEO Dr. Lisa Su and her team as they are getting ready to support AMD's growth inflection in the final quarter.Foundry partner Taiwan Semiconductor Manufacturing (TSM), or TSMC, is reportedly preparing for more CoWoS advanced packaging capacity, which is critical for the fabrication of the AI accelerators. DIGITIMES reported that TSMC's \"monthly CoWoS capacity is expected to increase from 8,000 wafers to 11,000 wafers in the second half of 2023.\" In addition, \"Nvidia and AMD are projected to absorb 70-80% of the capacity.\"As such, TSMC's focus on ramping up its advanced packaging capacity for its design partners is critical, as there were suggestions that TSMC could lack sufficient ability to meet near-term AI chip demand needs. As such, it's possible that the elevated expectations over AMD and Nvidia's growth inflection could have been overstated, leading to a steeper pullback if the market anticipates the earnings accretion might not pan out in the second half.Despite that, AMD's backend supply chain is reportedly optimistic about its ability to support AMD's AI chips and its 4th Gen EPYC processors. It was reported that \"AMD's backend supply chain is scheduled to start working on the new chips in July,\" which should align well with the company's production cadence and revenue accretion as guided.Therefore, I believe it likely all boils down to the market's expectations of AMD's execution prowess in the second half through 2024 on whether the company could gain a more solid foothold in the AI chips market. There are concerns that the server market could see much slower shipment growth in 2023 compared to FY22. In addition, higher-priced AI servers could also lead to lower shipments, requiring revenue accretion to be focused on ASPs increases.While AMD reportedly launched superior AI chip hardware specifications than Nvidia's H100, whether its open-source software ecosystem could compete effectively against Nvidia's proprietary approach remains to be seen. For now, I assessed that these uncertainties would likely dampen further upward re-rating on AMD's valuation. However, that also suggests that it could provide an attractive opportunity for high-conviction investors who have faith in AMD's execution in working out these challenges and gaining share against Nvidia.AMD price chart (weekly) (TradingView)AMD has retraced closer to its 20-week moving average or MA (red line), close to the $100 entry zone.I expect more buyers to return at those levels, which should help to underpin AMD's buying sentiments. However, the aggressive buy zone could be lower if the tech rotation turns out to be more intense than expected. As such, investors should be prepared to average down further at lower levels.Investors already with heavy/full exposure to AMD can consider adding at lower levels, while investors with little or no exposure should still find the $100 entry zone attractive.With that, I upgrade my rating on AMD.Rating: Buy (Revised from Hold).Important note: Investors are reminded to do their own due diligence and not rely on the information provided as financial advice. The rating is also not intended to time a specific entry/exit at the point of writing unless otherwise specified.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":192176799461512,"gmtCreate":1687948518314,"gmtModify":1687948522296,"author":{"id":"4101090498243360","authorId":"4101090498243360","name":"吉祥TC","avatar":"https://community-static.tradeup.com/news/06f173ae2c7f8e208e77495cd9e0ac6a","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Good entry price below 100","listText":"Good entry price below 100","text":"Good entry price below 100","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/192176799461512","repostId":2346721865,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":17,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2346721865"}