After a rough few days, Advanced Micro Devices (AMD) appears to be bottoming out. In fact, it’s now oversold on RSI, MACD, and Williams’ %R.  From a current price of $105.45, we’d like to see it test $120 again shortly.  Helping, Raymond James just said the AMD stock is a strong buy. 

Analysts at Benchmark also just raised their price target to $145 from $108, with a buy rating.  “We believe AMD is among the best-positioned companies to benefit from the tech sector’s broad macroeconomic adoption of Artificial Intelligence,” said the firm, as quoted by Barron’s.

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Better, earnings have been solid.

For its most recent quarter, the company posted second-quarter adjusted earnings of 58 cents a share, compared with estimates of 57 cents. Revenue came in at $5.36 billion which was slightly above analysts’ estimates of $5.3 billion.

Plus, as also quoted by Barron’s: “Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators [data center chips often used for AI applications] at scale,” CEO Lisa Su said in the release. “We made strong progress meeting key hardware and software milestones to address the growing customer pull for our data center AI solutions.”

Sincerely,

Ian Cooper