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- 1 AMD stock rallied significantly in the past few trading sessions and dropped in the last.
- 2 AMD, DELL, TSM, and NVDA all dropped noticeably.
Advanced Microdevices Inc. (AMD Stock) rallied 105% YTD, & is down by 5.64% in the last session, is the AI frenzy slowing down? Also, Taiwan Semiconductor Manufacturing (NYSE: TSM) is down by 3.23%, Dell Technologies (NYSE: DELL) fell by 5.30%, and Nvidia Corp. (NASDAQ: NVDA) corrected by 5.68%. The combined downfall hits towards slowing down the AI mania.
Advanced Microdevices Inc. (AMD Stock) – Comprehensive Analysis
Recently Nvidia briefly touched the market cap of $1 Trillion amidst the AI boom. In a similar time-lapse, AMD shares strengthened last week, rallying around 22%, but are down 10% from a recent high. At press time, AMD’s share price is $118.21, dropping 5.64% in the last 24 hours. Previous close and open were at $125.27 and $122.42, respectively.
The 52-week change comes with a jump of 8.86%, with an average volume of 63.52 Million shares; the market cap remains strong at $190.361 Billion. Analysts gave a 2.73 rating for Moderate Buy and placed a price target at $97.17 with a downside of 17.4%.
AMD stock price is 777% higher than its value five years ago, showcasing the value-creation potential of the business. The latest earnings were reported on May 2, 2023, with reported revenue of $5.353 Billion, down by 9.07% compared to the previous quarter. However, it was estimated to be $5.305 Billion. Hence the surprise is $48.046 Million with a hike of 0.91%.
The trailing twelve months (ttm) revenue is $23.07 Billion, while the gross profit is $12.05 Billion, and the operating margin hopped by 0.73%. Operating expenses increased by 36.82% in the recent quarter to $2.81 Billion, and net income dropped by 117.68% to minus $139.00 Million. Also, the net profit margin suffered by 119.48% to negative 2.60.
Quarterly Earnings Per Share (EPS) fell by 46.90% to $0.60, and the basic EPS is $0.24. Price to Earnings ratio in 2022 was 77.09, meaning the share price is overvalued. While in 2021, the P/E ratio was in the valid range of 56.80. Total cash in hand at the end of the quarter is $5.94 Billion, and the debt is $2.85 Billion.
In the last five years, AMD achieved a compound EPS growth of 24% annually. However, this number is lower than share price growth of 54% annually. Also, the shareholders received a total shareholder return (TSR) of 22% over a year. TSR over five years is reportedly 54%, an impressive feat.
AMD Stock – Candle Exploration
AMD Share price showed a noticeable rally in the last few trading sessions, an RSI of 69.54, and a slight upward bend in the EMA indicates positivity. However, the current price is down to retest the gap and could bounce off immediate support at $109.10. Bullish momentum could occur as long as the price is above this point.
If the AMD share price drops below the $109 mark, it would first test EMA before entering the demand zone. Also, before entering the supply zone, the price shall consolidate between the zone and immediate support for a while.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
