The Case for and Against Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) is an interesting player in the Technology space, with a focus on Semiconductor – Broad Line. The stock has been active on the tape, currently trading at $12.82, up from yesterday’s close by 0.00%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Advanced Micro Devices, Inc. (AMD) currently trades with a market capitalization of $12.43 Billion. That value represents a market adjusting for revenues that have been growing by 39.81 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $145 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.13 on a per share basis this quarter. Perhaps, that suggests something about why 1.24% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Advanced Micro Devices, Inc. recorded a 52-week high of $15.65. It is now trading 2.83% off that level. The stock is trading $10.85 its 50-day moving average by -1.97%. The stock carved out a 52-week low down at $9.04.

In recent action, Advanced Micro Devices, Inc. (AMD) has made a move of +26.81% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.08, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 18.60% with $964.54 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AMD.

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