AMD - Advanced Micro Devices, Inc.
27.67 -0.01 (-0.04%)
After hours: 6:18PM EDT
| Previous Close | 27.49 |
| Open | 27.60 |
| Bid | 27.66 x 1100 |
| Ask | 27.69 x 34100 |
| Day's Range | 27.34 - 27.88 |
| 52 Week Range | 9.56 - 34.14 |
| Volume | 39,137,276 |
| Avg. Volume | 77,336,391 |
| Market Cap | 29.938B |
| Beta (3Y Monthly) | 4.05 |
| PE Ratio (TTM) | 86.50 |
| EPS (TTM) | 0.32 |
| Earnings Date | Apr 23, 2019 - Apr 29, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | 1995-04-27 |
| 1y Target Est | 25.29 |
- CNBC Videos•3 days ago
Bernstein analyst on chip rally risks
Semi stocks are roaring this year. Bernstein's Stacy Rasgon, the number one chip analyst on the street, discusses the reasons why.
- Market Realist•1 hour ago
Intel Announces 5G Exit: Can Qualcomm Be Apple’s Chip Supplier?
Qualcomm Surges on Apple Settlement and Intel's 5G Chip Exit(Continued from Prior Part)Intel’s exit from the 5G phone business On April 16, Intel (INTC) announced that it is planning to exit the 5G smartphone modem market, as it wants to put its
- InvestorPlace•7 hours ago
5 Semiconductor Stocks to Buy for a Spring Charge
The end of the litigation between Qualcomm (NASDAQ:QCOM) and Apple (NASDAQ:AAPL) sparked a fire for both of those stocks and the semiconductor sector as a whole. The renewed bullishness for semiconductor stocks could continue through to the rest of the year for one good reason -- Apple and Qualcomm agreeing to end the litigation set the stage for friendlier times among technology firms ahead. Instead of fighting for high IP royalty rates, semiconductor stocks could forge multiyear supply deals with its customers.Sure, investors could risk overpaying for stocks by blindly assuming IP deals are coming. Fortunately, Apple is a big customer and has a high demand for components, benefiting semiconductor suppliers. * 5 Dividend Stocks Perfect for Retirees What are the five semiconductor stocks to buy for a spring charge?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Semiconductor Stocks to Buy: Qualcomm (QCOM)Source: Shutterstock Qualcomm and Apple agreed to drop all litigation, including those with Apple's contract manufacturers. Instead, Apple will pay Qualcomm in addition to signing a six-year license agreement, effective as of Apr. 1, 2019. The companies have an option to extend the deal for another two years. Qualcomm disclosed that the deal will add $2 in incremental EPS.Even though QCOM shares rose 40% on the week, the company's fair value rises sharply thanks to the deal with Apple. At a recent price of $79, the stock is trading at a discount because the company could win more supply deals with the top Android phone makers. Competitors cannot afford to let Apple have the best technology and could order Qualcomm's latest chip solutions to stay ahead.In the near-term, QCOM stockholders get two immediate positive catalysts. First, uncertainties are no longer an overhanging to the stock because Qualcomm no longer needs to keep going to court. Second, Qualcomm has guaranteed a revenue stream for the next six years. That stability is worth paying for, especially in the cyclical semiconductor market. Intel Corporation (INTC)Source: Shutterstock The Qualcomm-Apple settlement led to shares of Intel (NASDAQ:INTC) rallying a few points. Intel announced that it would abandon 5G phone modem development. Previously, Apple was rumored to release a 5G iPhone in 2020 that used Intel's modem. But now that Apple has a deal that allows it to use Qualcomm's far superior modem instead. If Intel lost the modem business to Qualcomm, one would think INTC stock would fall, not rise.Intel's modems are generally inferior to that of QCOM-powered ones. By exiting this market, Intel will become less distracted from the mobile devices market. Instead, it may now turn its sights back on the more profitable business of CPUs in the PC and servers. * 10 S&P 500 Stocks to Weather the Earnings Storm Intel's valuations are very attractive, too. The stock trades at a trailing price-to-earnings ratio of 13x. Despite the worrying competition from Advanced Micro Devices (NASDAQ:AMD), Intel still has loyal customers on the consumer and business markets. Still, Intel has plenty of work ahead. It is behind on the 7nm chip manufacturing and its latest products are supply-constrained. This is putting a cap on its revenue growth for the near-term.Advanced Micro Devices (AMD)Source: Shutterstock Advanced Micro Devices is enjoying a nice uptrend that began at the start of 2019. Valuations are not that compelling, but markets are willing to pay a premium. AMD stock is undergoing a multiyear transition that led to multiple product launches across three main lines of business: server, desktop and graphics cards. All three of these products are potential growth generators for AMD.In the server space, EPYC's scalability and computing power give enterprise customers good value compared to Intel's Xeon chips. CEO Lisa Su may announce Ryzen getting a refresh with a third-generation release next month at Computex. As AMD discounts current-generation Ryzen CPUs for the PC and notebook markets, it could gain market share over Intel.In the GPU space, the announcement for Navi, a mid-range solution, could help AMD win back market share from Nvidia (NASDAQ:NVDA). Nvidia leaped ahead of AMD with a GTX 1660 Ti release a few months ago. Rumors that a GTX 1650 for just $149 could further Nvidia's lead over AMD. NXP Semiconductors (NXPI)Source: Elektor Labs via FlickrNXP Semiconductors (NASDAQ:NXPI) traded above $101 for the first time since Jul. 2018. The stock lost all its value when the Chinese government delayed approval of Qualcomm buying the firm. NXP then earned a break-up fee of $2 billion and proceeded to buy back billions of dollars' worth of its shares.Investors should look at NXPI stock again now that markets largely forgave the company for buying back stock at a higher price. Management has a five-year autonomous driving supply plan in place. And with more technology components in vehicles, NXPI will stand to benefit. At a 14.9 times trailing P/E and 11.2 times forward P/E, NXPI stock is an appropriate stock to buy for the spring 2019 session. * 7 Stocks to Buy for Spring Season Growth NXP is scheduled to reported earnings on April 29. The company's prudent cost management, design wins and supply deals in 2019 will attract more buyers to the stock, and its ability to focus back on its core strengths will drive the stock back to 52-week highs of over $122. And even at that level, the stock will trade at a discount relative to the free cash flow generation from its businesses. Micron Technology (MU)Source: Shutterstock Micron Technology's (NASDAQ:MU) downside third-quarter guidance failed to scare off investors as the stock rose 28.5% during the quarter. In its second-quarter report, Micron reported DRAM sales falling 28%. NAND did better year-over-year and up 2%. On a quarter-over-quarter comparison, NAND revenue fell 18%.Micron forecast third-quarter revenue of around $4.8 billion and EPS of between 75 cents and 95 cents. Both numbers are below consensus estimates. Unsurprisingly, several analysts issued "hold" or "sell" calls on MU stock in the last month, according to Tipranks. But collectively, the 25 analysts covering the stock have an average price target of $54.41, representing an upside of around 26%.Investors should add MU stock to their portfolios this spring for the simple reason that NAND and DRAM prices appear to be stabilizing. Markets adjusted to the U.S.-China tariffs now and place. A refresh in premium smartphones, ongoing demand for memory and high-speed storage for servers and the firming up of PC sales will benefit Micron in the current period.As of this writing, Chris Lau owned shares of NXP Semiconductors. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post 5 Semiconductor Stocks to Buy for a Spring Charge appeared first on InvestorPlace.
- Investor's Business Daily•11 hours ago
Dow Jones Futures Signal Stock Market Losses; This Sector Leads Despite Plunging Earnings
Stock futures: Chip stocks such as AMD, Intel and Qualcomm are leading the current market rally even though they share this glaring weakness. Here's why.
- InvestorPlace•yesterday
7 Reasons the Stock Market Rally Isn’t Over Yet
Stocks are up big in 2019. Really big. Year-to-date, the S&P 500 as represented by the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up more than 16%. To put that in perspective, this decade has only featured two years wherein stocks returned more than 15% for the whole year. The stock market has already done that this year, and we aren't even a third of the way through 2019. People are finding stocks to buy all over the place.Given how far and how fast socks have rallied in 2019, some market observers think that best of 2019 is in the rearview mirror. Indeed, some pundits think that stocks have already reached their 2019 peak, and that the rest of the year will play out like the last few months of 2018.I don't buy that bear thesis. Stocks aren't done rallying here. Granted, while we may not see the S&P 500 tack on another 15% from here into the end of the year, stocks should be able to grind higher over the next several months for several reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 S&P 500 Stocks to Weather the Earnings Storm What are those reasons? Let's take a closer look at why stocks can and will head higher from here, and why you should still be open to new stocks to buy. The Economy Appears to Be Stabilizing & ImprovingAbove all else, stocks could remain in rally mode for the rest of 2019 because the global economy, which has slowed over the past several months, appears to be stabilizing and even showing signs of improving.The OECD area Composite Leading Indicator (CLI) has been slipping since late 2017, but February 2019's month-to-month drop in CLI was the smallest month-to-month drop since early 2018. Thus, the decline is moderating. This is true for the CLI in the EU, the U.S. and China.Broadly speaking, economic conditions globally are stabilizing in 2019, while they are actually improving in the U.S. and China. If these economic improvements persist, stocks will naturally remain on an upward trend. A Trade War Resolution Could Be Coming SoonSource: Shutterstock One of the biggest headwinds which weighed on stocks in late 2018 was rising trade tensions between the U.S. and China. But, those trade tensions have cooled substantially in 2019. Now, the consensus on Wall Street is that a trade war resolution is coming soon.If such a resolution does happen soon, stocks will rally in a big way. China economic activity will re-accelerate. So will U.S. economic activity. Corporate revenue and margin headwinds will move into the rear-view mirror. Profit estimates will move higher. Investor sentiment will improve. * 7 Stocks to Buy for Spring Season Growth In other words, I wouldn't want to be on the sidelines if and when a trade war resolution comes in 2019. The Fed Has Gone DovishSource: Shutterstock Another huge headwind which weighed on stocks in late 2018 was a hawkish Federal Reserve, which was seemingly determined to hike interest rates regardless of the incoming economic data.This headwind, too, has reversed course in 2019. The Fed has done a 180, going completely dovish and adopting a data-dependent policy. The data right now, while good, doesn't show any inflation. As such, the Fed appears ready to hold rates steady for the foreseeable future.Zero rate hikes into the end of the year could add some much-needed juice back into this economy. The consumer economy will pick back up thanks to lower borrowing costs. The housing sector will rebound. So will the auto sector. Industrial activity will pick back up. Broadly speaking, the whole economy should continue to improve so long as the Fed stays on the sidelines. That improvement will ultimately help push stocks higher. The Bond Market Has RalliedSource: United States Treasury, Bureau of Public Debt via WikimediaOne of the biggest thing for stocks is their valuation gap relative to bonds. In plain English, the bigger that gap, the more attractively valued stocks appear, and the more room they have to run higher from a relative valuation perspective.Right now, that gap is really big, mostly thanks to the Fed holding rates constant, which has led to a bond market rally, and kept the yields on bonds depressed. Specifically, the 10-Year Treasury Yield today sits at just 2.6%. The S&P 500 forward earnings yield is 6%. That is a 340 basis point spread between bond and stock yields, which is huge from a historical standpoint. * 7 Mid-Cap Stocks to Find the Market's Sweet Spot As such, relative to bonds, stocks remain historically undervalued. Because of this, until the bond market collapses, stocks will likely remain on an upward trajectory Valuations Are ReasonableSource: Shutterstock Even excluding valuation relative to bonds, stocks appear reasonably undervalued at current levels.The current forward-12-month price-to-earnings multiple for the S&P 500 is 16.7. That's only slightly above the five-year average forward multiple of 16.4. Plus, most analysts see 2019 as a weak year for earnings growth, and are projecting for 2020 earnings growth to be much better, given the global economic improvements outlined above.As such, fiscal 2020 EPS estimates for the S&P 500 currently sit at $187. A five-year average 16.4 forward multiple on $187 implies a 2019-end price target for the S&P 500 of over 3,050. The index currently sits around 2,900. Thus, upside into the end of the year looks good from a numbers perspective. The Market Has Leadership AgainSource: Shutterstock One thing close market observers always say is that in order for the market to head higher, you need market leadership. Translated, that basically means that financial markets are healthiest when there's a group of stocks which are paving the path for higher prices for the whole market.In the back half of 2016 and through all of 2017, the stock market had that leadership in large-cap tech stocks. The Nasdaq-100 Technology Sector rallied nearly 70% from July 2016 to December 2017, and that paved the path for a nearly 30% rally in the S&P 500. In 2018, the market lost that leadership. Tech stocks faltered, and the Nasdaq-100 Technology Sector dropped 6%. That likewise led to a 6% drop in the S&P 500. * 7 Stocks That Can Outperform for Years As economic and financial market conditions have improved in 2019, though, tech leadership has returned to the market. Tech stocks are up a whopping 30% year-to-date, and that has powered a robust 15% gain for the S&P 500. So long as this tech leadership persists, stocks should broadly head higher. Individual Narratives Are ImprovingSource: Shutterstock At the end of the day, the stock market is a collection of a bunch of individual stocks. Thus, so long as those individual stocks continue to do well, the stock market will broadly continue to do well, too.Presently, the outlook for individual stocks to head higher is favorable. Narratives across the market are improving. Digital ad stocks like Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are shaking off 2018 data privacy concerns and turning on the growth engines in 2019. Semiconductor stocks like Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) are rebounding amid signs that the worst of this recent cycle downturn is over. Retail stocks like Walmart (NYSE:WMT) and Target (NYSE:TGT) are pushing higher amid renewed consumer confidence. Housing stocks like KB Home (NYSE:KBH) are in full rebound mode as confidence has returned to the housing market. China stocks like JD (NASDAQ:JD) and Alibaba (NYSE:BABA) are likewise rebounding strongly as China's economy has improved in 2019.In other words, individual stock narratives are dramatically improving. So long as these improvements persists, stocks will broadly head higher.As of this writing, Luke Lango was long FB, GOOG, NVDA, WMT, HD, KBH, JD, and BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post 7 Reasons the Stock Market Rally Isn't Over Yet appeared first on InvestorPlace.
- Investopedia•yesterday
Intel Breaks Out to Fresh Highs After Qualcomm Deal
Intel shares moved sharply higher Wednesday after it abandoned plans to provide 5G smartphone modems, which could boost revenue and margins.
- Market Realist•yesterday
What Does Gundlach Have to Say about the Fed’s Next Moves?
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on central banks Jeffrey Gundlach presented his views on central banks’ policies and how they impact investments during his interview with The
- Market Realist•yesterday
NVIDIA Reaches Low-End PC Users with GeForce NOW Services
Why Investors Should Have Faith in NVIDIA's Gaming Business(Continued from Prior Part)NVIDIA’s GeForce NOW NVIDIA (NVDA) has been benefitting from the growing popularity of gaming, as it supplies the most advanced gaming GPUs (graphics processing
- Market Realist•yesterday
Why Analysts Recommend a ‘Buy’ for NVIDIA
Here Are NVIDIA's Key Growth Catalysts(Continued from Prior Part)NVIDIA’s investments NVIDIA (NVDA) has been leveraging its platform strategy and product segmentation strategy to improve its profits while keeping its expenses in check. Its
- Motley Fool•2 days ago
Sony's Next PlayStation Will Be Powered by AMD
It’s not a huge surprise, but it’s still a positive for the chipmaker.
- GlobeNewswire•2 days ago
AMD to Report Fiscal First Quarter 2019 Financial Results
SANTA CLARA, Calif., April 16, 2019 -- AMD (NASDAQ: AMD) announced today that it will report first quarter 2019 financial results on Tuesday, April 30, 2019 after the close of.
- Market Realist•2 days ago
AMD Stock Up 2.5% on Rumors of New Product Launches
WDC, MU, AMD among Top Gainers of the S&P 500 Index(Continued from Prior Part)AMD stock up 2.5% Today, memory chip stocks were some of the top gainers in the S&P 500 Index (SPY). Advanced Micro Devices’ (AMD) stock rose 2.6% in the early
- Investor's Business Daily•2 days ago
Netflix Dominates Stock Market News Ahead Of Quarterly Results
In stock market news Tuesday, Netflix dominated the headlines ahead of its earnings report after the close. Chip stocks led the Nasdaq higher.
- InvestorPlace•2 days ago
Sony PlayStation 5 Rumors: What We’ve Heard …
Sony PlayStation 5 rumors are heating up after details about the next-gen console were revealed.Source: Dalvenjah via FlickrHere's what we know so far about these rumors. * A recent interview from Wired gives a look at what Sony's (NYSE:SNE) next-gen console will be like. * Sony's Mark Cerny spoke about the console during the interview. * It's worth noting that Cerny never refers to the console at the PlayStation 5. * Despite this, the Sony PlayStation 5 rumors are heating up. * What Cerny does confirm is that this won't be a mid-console upgrade. * He instead refers to it as a "next-gen console." * It's also worth pointing out that Cerny says this console won't be coming out anytime this year. * The details about the video game console also include that it will feature a Solid State Drive (SSD). * Also among these details are that it will include a graphics card that is able to support ray tracing. * It will also be using a processor that is based on AMD's (NASDAQ:AMD) Ryzen line. * Cerny mentions that this next-gen Sony console will also be compatible with the PlayStaion VR headset. * It will also be using the same architecture as the PlayStation 4. * This means that the console will be able to play games that came out on the PlayStaion 4. * It's also worth pointing out that the console won't be digital only and will accept physical media. * 7 Marijuana Companies: Which Pot Stocks Should You Buy? You can learn more about the Sony PlaySation 5 rumors by following this link.InvestorPlace - Stock Market News, Stock Advice & Trading Tips More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Sony PlayStation 5 Rumors: What We've Heard … appeared first on InvestorPlace.
- Market Realist•2 days ago
J.P. Morgan Says Most Chinese Equity Gains behind Us
Where China's Economy Is HeadingJ.P. Morgan In an interview with CNBC, a J.P. Morgan representative warned that Asian equity markets could deliver only modest returns for the rest of the year. Mixo Das, Asia equity strategist at J.P. Morgan, said,
- InvestorPlace•2 days ago
Why Amgen Stock Could Break Out to New Highs
At first glance, shares of Amgen (NASDAQ:AMGN) look quite volatile. Upon further inspection, though, the six-month range in AMGN stock is actually pretty tight -- and it's been getting even tighter, as the stock has spent much of 2019 gathering in tightening coil. This sets up for a potentially large move. This move can happen in either direction, with bulls hoping Amgen stock resolves higher. * 7 Stocks That Can Outperform for Years Source: Richard Masoner via Flickr There are a lot of considerations when it comes to pulling the trigger on a name like Amgen. It's not just the technicals, but also the dividend, its valuation and growth profile. Let's take a closer look, first with the charts. Trading AMGN Stock Click to EnlargeAMGN is not the kind of stock that traders are normally drawn to. That's more for the names like Advanced Micro Devices (NADSAQ:AMD), Tesla (NASDAQ:TSLA) and others. But that doesn't mean we can't trace the technicals on AMGN stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the end of March, AMGN stock was showing weakness and threatening to break down from a short-term double-top. Fast-forward about two weeks and Amgen stock is above all of its major moving averages. While being rejected by downtrend resistance (black line), shares are hanging just below this mark. Could that set up a breakout?That's what I'm looking for in AMGN stock. A drop down to about $190 would give bulls a chance to initiate a position near the 20-day moving average and uptrend support. Whether the pullback is done here, near $193, or drops to $190, as long as support holds, it could give AMGN stock the energy it needs to push through resistance.On the upside, a push through $196 could eventually ignite Amgen up to $206. Shares put in a double-top at this level in the fourth quarter, so it wouldn't be surprising to see this area act as resistance on AMGN's first try. On the downside, watch for support from the 50-day moving average at $188 -- provided uptrend support does not buoy Amgen.Below that, and a drop into the low-$180s is possible. Valuing Amgen StockAmgen stock is looking better and better on the charts, but that doesn't mean there aren't things to like about its fundamentals.For starters, AMGN stock has a 3% dividend yield. Management gave a ~10% bump in December, following increases of ~15% in each of the last two years ago. While the company has experienced lower growth than the past few years, it's clear management is putting an emphasis on returning capital to investors.There's also the valuation, which stands at less than 14 times this year's earnings. There is a catch, though: While this is a below-market valuation, we have to consider it versus its peers as well as against Amgen's own growth profile. When compared to names like Celgene (NASDAQ:CELG), Bristol-Myers Squibb (NYSE:BMY) (who are in M&A discussions) and Gilead (NASDAQ:GILD), Amgen stock is expensive.These stocks trade at roughly 10 times earnings or less, so, at 13.7 times this year's earnings, Amgen looks less attractive. It would help if it had better growth, too. Analysts expect revenue to decline almost 4% this year and for earnings to fall about 2% year over year. That said, consensus expectations do call for a rebound in both metrics in 2020 while AMGN could always top expectations this year. After all, it has beat -- rather impressively, I might add -- top- and bottom-line expectations in each of the past four quarters. * 10 Stocks That Are Screaming Buys Right Now One last note, AMGN stock is actually trading at a discount compared to its five-year average valuation -- and that's not just the price-to-earnings ratio either. Amgen isn't perfect, but if shares are going to break out this year, I don't expect the valuation to inhibit that move.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Why Amgen Stock Could Break Out to New Highs appeared first on InvestorPlace.
- Market Realist•2 days ago
Gaming Notebooks Drive NVIDIA’s Gaming Revenue
Why Investors Should Have Faith in NVIDIA's Gaming Business(Continued from Prior Part)NVIDIA’s gaming revenue NVIDIA (NVDA) is a popular name in the gaming industry, as gaming enthusiasts and esports professionals prefer its GeForce GPUs (graphics
- Zacks•2 days ago
AMD's Latest Ryzen Embedded SoC Witnesses Rapid Adoption
AMD's recently unveiled Ryzen Embedded R1000 SoCs are witnessing robust adoption.
- Investing.com•2 days ago
AMD Climbs Midday on PlayStation 5 Inclusion
The PlayStation 5 is more than an upgrade, video game designer Mark Carny told Wired, and will include updated hardware and processors, including a custom GPU based on AMD's Radeon Navi hardware and an eight-core CPU based on its third-gen Ryzen line.
- Motley Fool•2 days ago
Why AMD Stock Can Jump Higher on Q1 Earnings
Gains in the CPU space and a potential bottom in the graphics card market could lift AMD stock higher.
- GlobeNewswire•3 days ago
AMD Expands Embedded Product Family, Adds Design Wins and Customers, with New Ryzen™ Embedded R1000
—The AMD Ryzen™ Embedded R1000 SoC provides a new class of performance for the embedded industry with 3X performance per watt vs. previous AMD R-Series SoC 1 and 4X performance.
- SmarterAnalyst•3 days ago
A Glimpse Into AMD’s Gaming Opportunity
Chip giant Advanced Micro Devices (AMD) appears unstoppable. The stock surged nearly 70% higher since falling to its near-term low on Dec. 26.Northland analyst Gus Richard believes AMD stock is still a 'buy' as he anticipates the launch of next-generation consoles in the next 12-months to drive results in FY’19 and FY’20. Also, on-going CPU shortages could last for a while longer, which should provide some near-term relief to the stock despite weakness in GPU shipments tied to cyclicality, and end-of-cycle console shipments.AMD’s semi-custom division is expected to report declining revenue due to the aging PS4 and Xbox One, which are near the end of the current console cycle. Gus Richard mentions in his report:> MSFT's xBox2 and Sony's PS5 are expected to launch in CY20. AMD guided semi-custom revenue down 20% in CY19 as Xbox and PS4 are at the end of their life cycle. We believe that Sony may launch the PS5 as early as March, and this may strengthen semi-custom revenue exiting the year. Moreover, we think our estimate for semi-custom growth for CY20 will likely turn out to be conservative. It’s worth noting that the ramp-up in console related revenue will have to wait until next year. Richard anticipates that semi-custom revenue will decline by 20% resulting in $1.58B revenue in FY’19 but will improve to $1.79B in FY’20 (representing a 13% growth rate). The launch of new consoles should be additive to AMD’s financial results next year.Gus Richard anticipates launch of PS5 and Xbox 2:> AMD Gaming Console Refresh: Both Sony and Microsoft are expected to launch a new game console in 2020 the PS5 and the Xbox2 (code named Scarlett). Both products are expected to use AMD 7nm Ganzola processor. We believe that qualification samples are already in customer hands and believe that Sony could launch the PS5 as early as March 2020 with Microsoft expected to launch in November 2020.The Ganzola processor is expected to be a massive performance overhaul from the original Jaguar cores, which are a couple generations old. Some technologists are anticipating a 2x performance enhancement for the CPU versus Xbox One and PS4 Jaguar cores versus Ganzola, which should help alleviate bottlenecks and lead to the launch of a true 4K gaming experience for consoles. There doesn’t seem to be enough detail relating to graphics specifications, but it’s safe to assume that AMD’s going to provide the internal parts for the upcoming console cycle, which we will learn more about at this year’s E3 gaming conference.In terms of CPU shortage updates, UBS released a note on April 12th, 2019:> Based on Gartner's preliminary worldwide PC shipment data, global PC shipment in Q1’19 fell 4.6% YoY. (If including Chromebook shipment, global PC shipment declined 3.5% YoY.) We attribute the decline in part to the ongoing shortage of Intel's CPU, which has been a constraint on overall PC shipments. Based on our Asia supply chain analysis, we expect global PC shipment to gradually normalize once the CPU shortage eases, potentially, in H219. However, it may still take two to three months to replenish inventory and for channel conditions to normalize. Overall, we maintain our global PC shipment growth forecasts of -3.2%/+0.3% for 2019/20 and expect modest PC shipment improvement in H2.AMD could absorb some of the PC shipment declines, as the company has managed to stay competitive with its line-up of CPUs, and with the anticipated launch of Ryzen 3 this year, the backdrop of weak CPU shipments/yields from Intel facilities, paired with the ramp-up of competing CPUs from AMD bodes favorably for shareholders. The loss of shipments tied to shortages could play a massive role for AMD, as even a 3% shortage that’s made up of AMD parts will drive the market share thesis that most analysts have been publishing about.AMD has a cautiously optimistic Moderate Buy consensus rating from the Street, according to TipRanks. This breaks down into 11 'buy', 9 'hold' and 1 'sell' ratings in the last three months. We can also see from TipRanks that the average analyst price target is $26.80 -- 2.5% downside from the current share price. Read more on AMD: * AMD Stock Gets a Price Target Boost Ahead of Earnings * Why the Rally in AMD Stock Isn’t Over Yet * This Analyst Loves Advanced Micro Devices (AMD) Stock. Should You? * AMD Stock: Next Stop, $30? More recent articles from Smarter Analyst: * Microsoft (MSFT) Stock's Big Rally Should Continue * Oppenheimer Still Sees 40% Upside for Tesla (TSLA) Stock * How Aurora Cannabis (ACB) Stock Gets to $11 * Canopy Growth (CGC): Piper Jaffray Wishes Upon a Marijuana Star (But Will Its Dreams Come True?)
- Zacks•3 days ago
Advanced Micro Devices (AMD) Dips More Than Broader Markets: What You Should Know
Advanced Micro Devices (AMD) closed at $27.33 in the latest trading session, marking a -1.87% move from the prior day.
- Insider Monkey•3 days ago
Billionaire George Soros Bought and Sold These Big Tech Names
Billionaire Georoge Soros is one of the greatest investors alive. Having made his fortune in a variety of markets and in both bull and bear times, Soros is currently a billionaire many times over. Soros was born in Hungury in 1930, lived through Nazi occupation, and made his fortune on Wall Street through his hedge […]
Market Realist•3 days agoChina No Longer Seems to Be Biggest Concern for Global Economy
China No Longer Seems to Be Biggest Concern for Global EconomyChinaLast year, China’s slowdown was cited as the biggest risk for global markets. The concerns were not unfounded. The Chinese economy grew at its slowest pace in decades last year.
