AMD - yet to prove itself

With the main market broadly weak, Advanced Micro Devices (AMD) was under pressure, not helped by mediocre earnings/guidance. The stock was whacked lower, settling lower by a powerful -13.5% at $12.33. With a break of multiple aspects of support, the door is open to a major washout around the $10.00 threshold.  


AMD, daily

AMD, monthly

Summary

First, Q3 earnings: http://ir.amd.com/phoenix.zhtml?c=74093&p=irol-newsArticle&ID=2310889
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Advanced Micro Devices (AMD) has always been a stock that has been one of hope, never having been sustainably/significantly profitable.

Q3 earnings were certainly continuing the improvement seen in recent quarters. However, headline EPS of 10 cents is just... mediocre. If you extrapolate 40 cents to the year, at a stock price of $12, that gives a FPE of 30.

I'll merely add, there are arguably better alternatives: MU, INTC, NVDA