On a poll I posted on my Value Stocks Journal on September 28, readers overwhelmingly agreed that Advanced Micro Devices (NASDAQ:AMD) is a buy ahead of earnings later this month. For short-term traders, the quarterly report will seem like an eternity away but for investors, chances are good AMD will affirm its recovery is well underway. Investors are now mulling with difficulty over buying AMD stock ahead of earnings. Since August, AMD’s stock is stuck in a tight range of between $12-$13 a share. Buying AMD at $12 and selling at $13 is a strategy that worked.
Poll: Buy AMD?
Source: Whotrades (links to active poll)
Of the 31 readers responding, 28 agreed AMD is an attractive stock, compared to 3 who disagreed.
Sales at a German retailer, Mindfactory, continued to trend favorably for AMD, though Intel (INTC) still commands the market in sales by revenue. Sales of Intel’s i7 7700K CPU continued to shrink (purple bar):
Source: Imgur
AMD’s mainstream processors, the r5 1600 and r5 1600X, held ground. More impressive is the surge in r7 1700X sales since July (striped green bars). On a per-unit basis, AMD’s r5 1600 and 1600X both held steady:
Source: Imgur
The numbers show that Intel is slowly losing some market share to AMD, thanks mostly to the Ryzen r5 and less so from the r7. It should come as no surprise that Intel’s i7-7700K is the most popular processor, even though Ryzen sales are taking some of its sales. Intel chips come with Integrated Graphics, or iGPUs, which negate the need for consumers to buy a separate graphics card.
AMD will fill the gap here with its Ryzen APUs. Already, the budget r3 processor is showing traction in the markets. At low price points and having GPU support, AMD’s APUs should add meaningfully to AMD’s sales. The
