AMD goes down or up, ‘high-risk/high-reward’ nature

Why Intel recovering sooner makes AMD a ‘high-risk/high-reward’ stock?

AMD shares were up 155% this year through Wednesday and it shows its high reward aspect while the rivals have been so dominant and strongly in control of the market in the past 10 years that any news on them going forward may make a considerable fluctuation in AMD price. Nobody really seems to be caring about AMD’s good news about the CES 2019 news and 7nm tech they are bringing on “AMD’s CEO Dr. Lisa Su to keynote address at the CES 2019.” In a normal environment it could make the bulls hopeful and long on AMD’s future but a good news for intel seems to be more effective in AMD’s price than a good news for AMD.

AMD New RoadMap Of New Ryzen CPUs and Vega GPUs - credit by AMD

AMD New RoadMap Of New Ryzen CPUs and Vega GPUs – credit by AMD

AMD will continue to be a high risk, high reward stock with a lot of volatility, RBC says.
“AMD remains as our high-risk/high-reward name where we believe upside could be $60 and downside to around $15 if the product has issues,” RBC analyst Mitch Steves said in a note sent to clients on Wednesday.
“We think the volatility will continue with the stock moving up or down 10% each month until 2019; this likely removes momentum traders and retail investors who take money off the table. “

AMD dropped nearly 4% after a research report said rival Intel may cure its production problem sooner than expected.
Tuesday’s sell-off spilled over into Wednesday, with AMD shares falling another 8% before bouncing after the ratings agency Moody’s upgraded the name, citing growth in its PC segment as well as strength in gaming consoles like the Xbox and the PlayStation. AMD’s stock was down 22% from its September high at Wednesday’s low.

After all, AMD shares were up 155% this year through Wednesday and it has proven that the path is very bright for AMD.

What are the new and upcoming bullish signs for AMD finishing 2018 entering 2019.

  1. Great Leadership – Dr. Lisa Su and team
  2. Architectural Design Brilliance
  3. Intel CPU shortage opportunity
  4. Chiplets/Modularity/Infinity Fabric for Moore Performance
  5. Modularity+Infinity Fabric for Less Engineering Cost
  6. Modularity/Infinity Fabric Enables Unique Products
  7. Zhongshan Subor gaming console in Chinese market
  8. Microsoft Xbox
  9. Sony Playstation
  10. AMDs new generation of laptops and desktop APUs
  11. Tesla has discarded Nvidia GPUs for its new autonomous driving hardware. It is rumored that the new hardware is using AMD hardware with custom Tesla designed elements
  12. TAM++ :  AMD is shipping products this year across a larger TAM than any of it’s competitors.
  13. Semiconductor design is like driving a semi-trailer
  14. 7nm Rome Epyc “Monster” : 32/64 cores/threads per chip
  15. 7nm Vega X2 “Monster” : 7nm Vega has Infinity Fabric and can be run with MULTIPLE Vega chiplets in one GPU.
  16. Security: AMD did not as much nightmares on the CPU flaws in 2018
  17. NEW Markets AMD has/will enter 2017-2019: mid and high end desktop CPU market, mid and high end laptop market, Entire workstation market, Entire professional desktop market, Entire professional laptop market, high end GPU market, Entire datacenter server CPU market low middle and high end, AI market, Embedded Market
  18. Institutional Demand: Only 692 institutions own AMD vs 2789 who own INTC

 

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Technology, finance, AMD, intel, intel stocks, amd stocks, amd price, amd bullish, amd cpu, amd gpu, amd skyrocket, stocks, amd shares, amd predictions

Mohsen Daemi
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