I want to take some time out of your day to discuss the financial situation of AMD and whether or not this is a stock we should be buying or selling.
Some background: AMD (Advanced Micro Devices) is an American worldwide semi-conductor company located in Sunnyvale, California. Their main products consist of semi-conductors, servers, motherboard chipsets, graphics cards, and other technological devices.
- AMD is the second largest global supplier of microprocessors based on the x86 architecture and one of the largest suppliers of graphics cards worldwide.
- AMD is the only major rival of Intel in the central processor (CPU) market.
- AMD is one of two major competitors in the graphics processor unit (GPU) market. The other being Nvidia.
I won't go as in-depth as many analysts go, mostly because I feel it is unnecessary and I'd like to focus on the most important aspects of the company to determine whether or not they are at a simple buy or sell status. To do this, I read and scan a vast number of articles over a short-time frame and compare the information from each article. After digesting the information and summarizing the most important factual data, I then look into its historical performance and compare those numbers. Lastly, I run my own models and back-test them extensively.
Currently: AMD has been underperforming in comparison to the market, and is considered a :penny stock" due to the <$5.00/per share price.
- As of Wednesday, June 17th, the share price for AMD was $2.36.
- At closing on Thursday, June 18th, the share price for AMD was $2.52.
-Resulting in a $0.16 increase per share.
-It's important to note that the increase in share price from Wednesday to Thursday was the result of an announcement AMD made at the Electronic Entertainment Expo (E3), where they announced their latest graphics cards; the Radeon R9 and the R7 300.
Well, first: these are the first graphics cards produced by AMD that will utilize AMD's high-bandwidth memory (HBA).
FBR&Co's Christopher Rolland believes a target price of $3.50. Why? Because analysts believe that the price of both the Radeon R9 and the R7 300 are priced well. With the R7 marketed towards lower-end gamers and starting at a roughly $150 price range, while the R9 is geared towards 4K quality displays and starting around the $300 price range.
Many analysts and investors are happy with the direction AMD is currently going and are optimistic in regards to its stock price.
The company is currently is rated as UNDERPERFORMING, meaning no sell, and I'd argue a cautionary buy.
*As of this writing the after-hours trading price has dropped to $2.47.
Using R, I did a simple chartSeries plot:
I'll be following AMD and posting more detailed analysis in the future, as well as focusing on several penny stocks. I will also be sharing several strategies and various other information as time allows.
Thanks!
And let me know if you have any questions, tips, concerns, or requests!
RT
