AMD: Trend Reversal In Sight
Summary
- I upgraded my rating to a strong buy. Call options are expensive (high IV), so I haven't opened a long position in this stock.
- Q1 results show a continuation in growth, driven by the data center and (finally) the client segments. The upcoming launch of the MI350 series is a nice catalyst ahead.
- The partnership with Oracle and Humain is a clear indication that AI infrastructure companies are betting on AMD's GPUs and (emphasis) CPUs.
- From a price action perspective, I see a clear trend reversal. Furthermore, an insider loaded $1 million worth of shares earlier in May.
- I would caution on Q2 data center weakness and low institutional activity. Holding shares around the Q2 earnings release may be risky.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.