To The Moon

AMD $AMD(AMD)$will rebound soon

Considered one of the fastest growing semiconductor brands in the world and posting the highest percentage revenue gain of $6.6B, worldwide semiconductor company Advanced Micro Devices operates in two divisions: computing and graphics. Like Taiwan Semiconductor, AMD has felt the effects of the volatile market, despite it being an analyst favorite with impressive results. Trading near its 52-week low of $71.64, AMD maintains its $26.3B guidance while continuing to trade at a relative discount.

Although the stock is down more than 12% over the last year, and -34.71% YTD, AMD is trading just under $100 per share, a relative discount with a forward PEG ratio of 0.64x, -55.91% difference to the sector.

Q2 guidance for AMD was solid and maintained at $26.3B. But the market reacted negatively to the news, prompting AMD’s share price to fall, despite the broader chip sector experiencing a rally.

AMD is focused on developing premium chips, and its quality product has resulted in a Q2 EPS of $1.05, beating by $0.01, and revenue of $6.55B, beating by $20.78M. Each of the company’s divisions grew substantially, year-over-year, and gross margins were up 54% YoY, more than 2x from the prior.

@CaptainTiger