Advanced microsystems (AMD) was one of the first to follow Nvidia into the artificial intelligence market. It’s starting to pay off for Santa Clara-based AMD. Its stock rallied more than 200% from its October 2022 low of 54.57, trading at around 164 on Thursday afternoon. Also on Thursday, Relative Strength Rating (RS) for AMD, the title climbed to 84, against 80 the day before.
The improved 84 RS rating for AMD stock shows that the chipmaker’s stock is in the top 16% of all stocks in IBD’s database. This is a notable distinction. Over 100 years of market history reveals that the best stocks tend to have an RS Rating of 80 or better when they launch their biggest runs.
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AMD shares rise. Are you preparing for the escape?
Additionally, AMD is a leader in the artificial intelligence revolution. He competes with Intel (INTC) on microprocessors, the “brains” of computers. And he competes with Nvidia (NVDA) with a GPU, the chip technology that servers use to process AI transactions.
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AMD is in a growth position and enjoys good ratings. However, please note that its fundamentals could be improved. Analysts agree that improvement could be imminent.
The watchlist candidate last quarter reported a slight 3% gain in EPS to 62 cents on revenue up 2% to $5.47 billion. The consensus is for a 60% increase in EPS this quarter on a 7% increase in revenue, with even stronger growth. screened later this year.
Meanwhile, among its other key ratings, AMD has a bullish 89. Earnings per share out of 99. This is Composite score is an average 78, and it’s SMR rating (sales + profit margins + return on equity) is an average C on an A to E scale.
Funds accumulate in this AI game
Reflecting its entirely decent fundamentals, AMD stock has a low E Accumulation/distribution rating, a gauge of purchasing by institutional investors. Nonetheless, hinting at new highs to come, the number of funds tracking AMD stock increased from 4,060 in September to 4,226 in December. That number jumped to 4,357 in March, according to MarketSurge data.
AMD stock was up Thursday afternoon. That’s more than 5% after 125.72 entered a second leg cup with handle. This means it is now out of a true buying zone. Look for the stock to offer a new buying opportunity as a three tight weeks or rollback of 50 days or 10 weeks.
AMD stock ranks No. 13 among its peers in the 39-stock Electronics-Semiconductor Fabless industry group. Nvidia (NVDA), Arm holds (ARM) And Broadcom (AVGO) are among the 5 best-rated stocks in the group.
IBD’s proprietary RS Rating measures technical performance by showing how a stock’s price performance over the past 52 weeks compares to other stocks in our database.
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