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AMD Zooms Higher After Price Target Hike - Cycles Point To Near-Term Pullback

|About: Advanced Micro Devices, Inc. (AMD), Includes: SMH

Advanced Micro Devices (AMD) traded nearly 5% higher on Thursday morning, after a stock analyst raised its target.

Rosenblatt Securities raised its price target on AMD from $27 to $30, which is now the highest price of the Wall Street analysts who cover it. According to Rosenblatt’s Hans Mosesmann, this year’s top performing chipmaker is doing well in part to an advantage in process manufacturing that competitors do not share.

The stock is up over 100% year to date, compared to the the Market Vectors Semiconductor Index (SMH), which is up 5% on the year.

AMD continues to take market share in part due to an unexpected delay in Intel’s transition to the 10 nanometer process, he explained. In particular, AMD is making inroads in the Chinese market. Mosesmann said he was raising his target, "Because of our renewed conviction of a multi-year double digit growth profile for AMD."

In analyzing the market cycles for AMD, it is clear that the stock is still in the rising phase of the current cycle. This has indeed been a fantastic chart pattern, but it is now in our resistance zone. While we expect pullbacks, they should be minor, with even higher prices ahead.

Advanced Micro Devices (AMD) Stock Chart with Weekly Bars

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.