There is no doubt AMD under the leadership of Lisa Su and the advantages of its IPs is on track for high growth by gaining market share on Intel and staying relevent if not competitive against Nvidia. AMD's P/B ratio is significantly lower than similar stock and PE ratio is also lower than the average in the industry. AMD also sees very high revenue growth as well as earning beats and guidance beats above industry average that are likely to continue due to its robust product refreshes. With that said, lets look at the technical.
AMD has been oversold due to crypto scare and stock downgrade manipulation, which allows for a significant upside for the undervalued stock and allows for an incredible upside. The recent gains also provides a great entry point as the bull trend is established after the amazing Q2 earnings and a break out looks ripe.
Range bound analysis sees an immediate resistance above 13$ at the downward trend line(last ditched effort for shorts), but a more than likely blowout Q2 announcement around end of july will crush that bearish bias and squeeze the shorts to test the recent highs around 15.
15 would be a fair value for AMD by the time Q3 comes out(provided with a decent market sentiment). More than a 30% upside for those with the patience. At least a 15% upside to 13$ in the near term.
Disclosure: I doubled my money with call options bought before Q2 after losing 30% by buying before Q1. Has a mixed portion of stock and options now.
Suggested strategy: Sell the stock and buy options when AMD stock dips and sell option to buy stock as AMD rally to major resistance levels.
AMD has been oversold due to crypto scare and stock downgrade manipulation, which allows for a significant upside for the undervalued stock and allows for an incredible upside. The recent gains also provides a great entry point as the bull trend is established after the amazing Q2 earnings and a break out looks ripe.
Range bound analysis sees an immediate resistance above 13$ at the downward trend line(last ditched effort for shorts), but a more than likely blowout Q2 announcement around end of july will crush that bearish bias and squeeze the shorts to test the recent highs around 15.
15 would be a fair value for AMD by the time Q3 comes out(provided with a decent market sentiment). More than a 30% upside for those with the patience. At least a 15% upside to 13$ in the near term.
Disclosure: I doubled my money with call options bought before Q2 after losing 30% by buying before Q1. Has a mixed portion of stock and options now.
Suggested strategy: Sell the stock and buy options when AMD stock dips and sell option to buy stock as AMD rally to major resistance levels.