DiscoverGold
2 days ago
Call Traders Brush Off AMD's Sideways Price Action
By: Bruce Powers | July 1, 2024
• Options traders AMD over the past two weeks
• Options traders are in luck, as premium is cheap right now
The shares of chip firm Advanced Micro Devices Inc (NASDAQ:AMD) are tumbling today, down 3.8% at $156.09 at last glance. The semiconductor sector has boomed behind Nvidia's (NVDA) position as a leader in the artificial intelligence (AI) space. In fact, AMD hit a record high of $227.30 on March 8. The equity's subsequent pullback was saved by its 180-day moving average, and it still sports a 6% year-to-date lead and a 37.3% year-over-year gain.
Like shares of Nvidia, Advanced Micro Devices stock is a regular on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest options volume during the last 10 days, and the past two weeks are no different. During this time, AMD saw 4,983,149 calls and 2,901,733 puts exchanged, with the most activity taking place at the weekly 6/28 165-strike call.
Now looks like a good time to speculate with premium. The stock's Schaeffer's Volatility Index (SVI) of 39% sits higher than just 16% of readings from the past year, meaning premium is affordable amid low volatility expectations.
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Stock Guy777
5 days ago
Apple Stock, AMD, and 8 Other ‘Best Ideas’ for the Second Half of 2024
Advanced Micro Devices is the first company on the list, with a Buy rating and $250 price target. Shares of AMD have risen 6.9% this year, far less than the stocks of some of its chipmaking peers. Nvidia, the poster child for success with AI, has more than doubled.
Some analysts, including Morgan Stanley’s Joseph Moore, who recently cut his rating on the stock to Equal Weight from Overweight, are more cautious on their view of AMD given that it competes with Nvidia. But Rosenblatt analyst Hans Mosesmann said AMD can be a winning stock regardless, writing “we do not need to make the case that AMD is better than Nvidia (the green team is clearly on another plane of AI enlightenment); we need to make the case that AMD can capture a modest mid-teens share.”
AMD is a top pick due to the company “possibly gaining accelerator share for the next couple of years, a better-than-expected MI3xx lineup entering 2025, continued CPU share gains (yes, there are a couple more years of this) vs. Intel, and a broader non-AI recovery exiting 2025,” he wrote
IanFromSI
3 weeks ago
Under Andy Groves leadership, Intel was always at least two steps ahead of its competition and could have wiped out both Nvidia and AMD with a single step to another generation of lower priced chips that neither competitor would be able to compete with.
Antitrust laws are probably the only thing that saved both of those companies at that time.
Now, Intel is a shadow of its former self. Pat Gelsinger may well be a brilliant engineer, but he’s seriously lacking in managerial capability, especially strategic thinking, planning and implementation.
Every semi conductor company did everything themselves internally. There was no applied materials or Tokyo electron, no Lam Research, no Novellus, no Kulicke and Soffa. No KLAC, no foundries, etc..
Putting the company into multiple years of multi billion dollar losses strikes me as the epitome of idiocy. …. Especially when it’s unlikely that any of its major competitors would even consider using their foundry, should it ever exist and able to compete with TSMC
Last time I looked, Intel market cap was a boat $125 billion. AMD was more than double that. …. And Nvidia just attained a new all-time high of about $3.1 trillion.
I would be very surprised if Intel ever reaches its former glory in my lifetime.
With Lisa Su, AMD might. …. And I hope it does. A realistic competitor for Nvidia is desperately needed. …. And Intel
is showing absolutely no signs whatsoever that it could ever fulfil that role.
JMHO,
Ian