AMD's Consolidation Presents Strong Price Development (Technical Analysis)

Oct. 20, 2023 10:29 AM ET Advanced Micro Devices, Inc. (AMD)

Summary

• Advanced Micro Devices, Inc. is expected to announce Q3 2023 earnings with anticipated growth in revenue due to strong product demand.
• The stock price has held steady, and consolidation at key levels suggests a bullish price development.
• AMD's financial results in Q2 2023 were impressive, with commendable revenue figures and notable growth in non-GAAP figures.
• The appearance of the bull flag, combined with the inverted head and shoulders, underscores the bullish price movement.

The article discusses Advanced Micro Devices, Inc. (AMD) and its upcoming Q3 2023 earnings announcement, with a focus on the company's strong product demand, financial results, and potential price development. Here's a summary of the key points:

1. Earnings Expectations: AMD is set to report its Q3 2023 earnings on October 31, 2023, with expectations of revenue and earnings growth due to robust product demand. The company anticipates revenue of around $5.7 billion, with the potential to exceed this figure.
2. Impressive Q2 2023 Results: In Q2 2023, AMD reported a revenue of $5.4 billion, showcasing a strong presence in the semiconductor industry. The company achieved notable financial results, particularly from a non-GAAP perspective, with a net income of $948 million and diluted earnings per share of $0.58.
3. Key Events and Strategic Moves: AMD's Q2 2023 was marked by significant events, including the launch of new processors and strategic partnerships with industry leaders. The company also announced plans to invest in adaptive computing research in Ireland and appointed a new chief commercial officer.
4. Technical Analysis: The article presents technical analysis and charts highlighting the bullish price development of AMD. It mentions the appearance of a bull flag and an inverted head and shoulders pattern, which signal potential upward momentum.
5. Market Risks: The article acknowledges potential risks, including supply chain dynamics, inventory adjustments, economic uncertainties, geopolitical unrest, competition, and the possibility of underperforming against market expectations.
6. Investment Opportunity: The technical analysis suggests that AMD's consolidation at critical levels and the presence of bullish patterns present an investment opportunity for long-term investors. The article recommends considering increasing long positions at the current rates.

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