Wednesday, 5 April 2017

AMD - headed far higher

Whilst the main equity market settled moderately lower, there was more significant strength in Advanced Micro Devices (AMD), which saw an intra high of $14.64, but settling +0.1% at $14.17. Near term outlook offers the 15/16s, with the 17s highly viable in early May. If 'better than expected' earnings, then the $20.00 threshold would be a real threat to those still trying to short.

AMD, daily

AMD, monthly


Yesterday saw a group of maniacs downgrade Nvidia (NVDA). Even the mainstream seemed to recognise that call made little sense. Indeed, many are seeking NVDA to the 130/140s before year end.

As for AMD, its had an insanely strong run since the Jan'2016 low of $1.75. Yet the new line of CPUs/GPUs continue to receive a great deal of positive attention.

Considering the broader market, further upside to the mid/upper teens seems viable.

A hyper-short squeeze is possible if earnings - due Thursday May 4th in AH, come in better than expected, and  AMD could even test the $20.00 threshold.

For the record, I remain wondering if AAPL might eventually want to pick up their own CPU/GPU producer. At $30 a share, that would roughly cost AAPL $30bn, which is ironically less than one quarter of net profit.

Yours... bullish