AMD's Stock Could Be Due For A Pullback, These 2 Pros Say
Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) recently broke above levels not seen since 2000 and hit a fresh all-time high just shy of $60 per share.
What's next for the stock whose history as a public company dates back to the 1970s?
Gordon: Too Fast, Too Far
Todd Gordon of Ascent Wealth Partners said on a CNBC "Trading Nation" segment that AMD's daily chart dating back to late 2018 shows nearly uninterrupted momentum, adding that it broke above the key $38 level in late 2019.
Since then, the stock appears to have gone up too far and too fast, he said. As a shareholder, Gordon said he is "nervous."
AMD's stock could return back to a support level of $38, which represents a downside of more than 30%, he said.
"You have to decide, are you willing to ride it down to that point?" Gordon said. "And that's something I'm thinking about a lot."
'A Lot Of Good Things' At AMD
AMD's management deserves credit for showing "a lot of good things" to investors over the past few years, Gradient Investments Michael Binger also said on "Trading Nation."
But the stock shouldn't be bought today, he said, as it is trading at a "rich" valuation of 50 times 2020 earnings and 40 times 2021 earnings.
It's also important to consider that AMD is still a company that sells into the PC market, which doesn't grow that much, Binger said. As such, investors may want to consider waiting for a pullback before buying the stock, in his view.
AMD shares were down 7.06% at $53.22 at the time of publication Friday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.