ONLINE FOREX BROKER
2021-11-08 • Updated
Intel reported Thursday weaker-than-expected third-quarter sales results, with the stock falling more than 10% on Friday to around $50 a share. The company blamed supply shortages for a slowdown in its PC business. Moreover, the company is now mostly separated from Apple, which has created its own processors. All these create risks the company will have to deal with. On the other hand, Advanced Micro Devices (AMD) is reporting Q3 results today (October 26, 23:15), and we can’t help but to analyze the prospects of the main Intel rival.
Advanced Micro Devices Inc. (AMD) is a semiconductor company, that offers microprocessors that can operate as a GPU and APU (discrete graphics processing units and accelerated processing units). Its products are widely used in desktops, notebooks, game consoles, and servers.
The shortage of microchips might prompt an investor to believe that these are golden times for semiconductor manufacturers because high demand and limited supply can combine for higher prices and rising profits. But the low supply can also hurt sales in the short run.
The last AMD report was on July 27, and the company beat expectations. Earnings were $0.64 per share ($0.54 expected) on revenue of $3.9 billion ($3.6 billion expected). Also, the revenue grew 99.3% on a year-over-year basis (12% quarter-over-quarter growth). Such positive results boosted the price by 36% in 7 trading days. The company has stated that it expects 2021 annual revenue to grow by approximately 60.
Also, AMD is increasing its share in revenues in the reports of Taiwan Semiconductor Manufacturing Co (TSM is the biggest chips producer in the world). Only two years ago Intel was in charge, but now the game has changed. If AMD manages to keep the relationship with TMS at a decent level, it will have an opportunity to negotiate on better prices and shipment.
Even that statements compare favorably with Intel’s ones. Couple that with the company switching its production to higher-margin chips and we get a strong mix of revenue and performance growth. Of course, we need to notice, that the stock price has already increased in anticipation of a good report, and after the results, we may see a fixation of the profit. Nevertheless, we expect the company to declare even bigger future revenue growth, thus, as an investment idea, AMD is a perfect opportunity.
Despite such an upright chart, the stock has the chance to reach strong resistance at $138 and $150 per share, even after the possible pullback. To 50-day MA.
AMD daily chart
Resistance: 132: 138; 150
Support: 108; 100; 92
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In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
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