Advanced Micro Devices Stock News and Forecast: AMD trends higher inside wedge formation
- AMD stock sinks 4.5% on Thursday.
- Russia-Ukraine
- Cisco CEO says not
Advanced Micro Devices (AMD) opened on Friday up about 1.2% near $118. The stock fell victim to a rollercoaster ride on Thursday alongside most of the market after Russia invaded Ukraine, with AMD shares trading down to $103 and then closing at $116.61. The stock is trading inside a wedge formation.
Advanced Micro Devices Stock News: Ukraine, Goldman Sachs
Equities have already been quite depressed over the past three months, so when the invasion of Ukraine spooked the markets on Thursday morning by midday it seemed most of the market was scooping up deals.
"[W]e view these geopolitical shock events as times not to panic (knee jerk reaction this morning is always very scary watching the red screens) but instead selectively focus on the defensive tech stocks with significant free cash flow and oversold tech stalwart names across the tech ecosystem," wrote Wedbush's celebrity analyst Dan Ives in a note to investors.
After the market closed on Thursday, management announced an $8 billion share repurchase program. This comes on top of the $4 billion repurchase strategy announced in May 2021, which the company still has $1 billion worth of repurchases left to carry out. The share repurchase program
AMD was a focus of a recent Goldman Sachs report detailing retail stock buying pattern since the pandemic began. Since December 2019, AMD is the second most popular stock with retail investors based on total investment. Retail investors spent $9.5 billion on AMD, only behind the $10.4 billion spent on competitor Nvidia (NVDA). All told, retail investor buys accounted for 23.2% of AMD's market cap. Based on percentage of market cap, AMD ranks only behind retail favorites GameStop (GME) and AMC Holdings (AMC).
AMD key statistics
| Market Cap | $185 billion |
| Price/Earnings | 35 |
| Price/Sales | 8 |
| Price/Book | 18 |
| Enterprise Value | $182 billion |
| Operating Margin | 22% |
| Profit Margin |
19% |
| 52-week high | $164.46 |
| 52-week low | $72.50 |
| Short Interest | 6% |
| Average Wall Street Rating and Price Target | Buy, $153.59 |
Advanced Micro Devices Stock Forecast: $103 the new support
Thursday's thorough drop demonstrates support at $103. It is more interesting thought that a wedge appears to have formed on the daily chart. Beginning on November 30, the top trend line drops to the February 10 high. Of course, this one is messy since the swing high from the turn of the year jumps above the trend momentarily, but perfection is hard to come by in charting.
The bottom trend line only has two points of connection – January 28 and February 24. If taken seriously though, the apex of the wedge is at $109. It may not prove to be important, but traders may want to wait until AMD price breaks above the top line to enter a long. Currently, it sits at $126.28 but will continue descending in coming sessions.
February 9's range high at $132.96 is still the upside target. The 50-day moving average cut below the 100-day moving average just above here. Support is at the 200-day moving average at $113, and then at $110, $103 and $100 based on prior history.
AMD 1-day chart
Like this article? Help us with some feedback by answering this survey:
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
