Market Overview

AMD Popped On Bullish Analyst Comments, And The Chart Shows More Room To Run

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Summary:

  • Advanced Micro Devices, Inc. (NASDAQ: AMD) rose by over 8% on Wednesday after Nomura initiated coverage of the stock with a Buy rating and $33 price target.
  • Based on its market cycles, we believe this one may have more room to run in the near term before a corrective phase of this cycle kicks in

Advanced Micro Devices Stock Weekly Chart

David Wong, an analyst at Nomura Instinet specializing in semiconductor stocks, initiated coverage on the stock with a buy rating. He believes that AMD will earn $0.27 per share and $0.67 in 2020.

Wong explained, “We think that AMD’s high revenue growth and rapidly improving profitability justify what we consider to be an elevated multiple. We believe that further share momentum, as well as favorable mix, will help drive AMD’s sales growth.”

In analyzing the market cycles for AMD, we can see the stock is clearly in the rising phase of its current cycle. While it is also in a resistance zone, it is relatively early in this cycle. We think it may continue to rise to $31 in the near term before tailing off as this cycle matures.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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