Advanced Micro Devices Share Price Forecast August 2021 – Time to Buy AMD?
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Shares of American multinational semiconductor company Advanced Micro Devices (NASDAQ: AMD) have closed at $112.56 as of AUG 3rd (19:59 UTC-4) with an uptrend of +3.62% continuing its recent performance which has attracted a lot of investor attention. Let’s examine whether AMD is a share worth adding for investors right now.
Advanced Micro Devices – Technical Analysis
Advanced Micro Devices released its financial statement, which indicated that its market cap is $136.531 billion with total assets worth $10.691 billion. Revenue for 2020 was at $9.76 billion with a profit margin of 25.50% compared to revenue in 2019 which was at $6.73 billion. The current debt to assets percentage is at 34.87%.
Moving averages for Advanced Micro Devices such as Volume Weighted Moving Average (20)(98.57) and Hull Moving Average (9)(112.39) are pointing towards a buy action which is also supported by some oscillators such as Momentum (10)(25.45) and MACD Level (12, 26)(5.37).
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Recent Developments
The main business for Advanced Micro Devices is preparing microprocessors for the computer and consumer industries. CPUs and GPUs used in the personal computer and data centre markets are the main sources of sales for the company. It acquired ATI. A graphics processor and chipset maker in 2006, aimed at improving its positioning in the PC market. It formed GlobalFoundries in 2009. In an effort to diversify its business and augment its presence in key end markets, it acquired FPGA-leader Xilinx.
AMD shares extended gains for five consecutive days and closed 3.6% higher on Tuesday. They also hit a new 52-week high of $114.85 after the company announced Apple Mac Pro desktop compatibility for its new AMD Radeon PRO W6000X series GPUs. The company has also benefitted from the UK government’s move to block Nvidia Corp.’s $40 billion acquisition of UK-based chipmaker Arm Ltd. citing national security reasons.
After joining the company in 2012 as senior VP and general manager, visionary CEO Su has expanded the EESC unit by manufacturing custom chips used in Microsoft’s Xbox One and Sony’s PS4., both of which launched in 2013. The new unit also started producing EPYC data centre CPUs and provided new chips for Sony’s and Microsoft’s latest console editions. The unit was single-handedly responsible for AMD reducing its reliance on PC sales.
Should You Buy AMD Shares?
Retail investors are highly interested in AMD shares as evident from Reddit forums. For example, a subreddit called r/WallStreetBets had AMD as their third most discussed stock. The 10.7 million-user forum has been previously responsible for driving the GameStop Corp and other shorted stock rallies earlier this year. Many analysts have also pointed out the delay in production for rival Intel Corp’s newest chips, which is driving investors towards AMD as it is seen as an opportunity to grab some market share. AMD also added Alphabet and Tesla as high profile customers in June.
AMD’s improving earnings outlook can be the main reason why investors are interested in it. The trend is expected to continue as analysts are still raising estimates for the AMD. The company is expected to earn %0.66 per share in the current quarter, which is a 60.98 increase from the same a year ago. It is also expected to earn $2.50 per share for the full year, which is also an increase of 93.8% from the same a year ago. All of these are signs that investors should pick up AMD shares at the moment.
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