Can AMD Stock Bounce Back On The Recent Positive Cues? Advanced Micro Devices, Inc
Will Advanced Micro Devices, Inc. (NASDAQ:AMD) stock resume its uptrend after continuously closing in the red since June 23rd?
Flickr
Shares of Sunnyvale, California-based Advanced Micro Devices, Inc (NASDAQ:AMD) have lost more than 13% of their value since breaking above the $14 mark (on June 22) for the first time since the beginning of April. AMD stock has consecutively closed in the red since June 23rd. The broader market correction and the global tech sell-off has weighed heavily on shares of the semiconductor company. Even some analyst’s bullish commentary on AMD during this period has failed to stem the slide. However, there has been some positive news coming in over the weekend which could certainly lift the spirit of AMD investors. Is a rebound in AMD stock on the cards? Let’s take a closer look.
AMD takes largest quarterly share from Intel till date.
Over the past few months, a lot has been said and written about AMD’s latest offerings taking the fight to its much larger rival Intel (NASDAQ:INTC). But, now it can be confirmed that AMD is making the life of the Chipzilla very difficult. According to PassMark’s quarterly market share report, the chipmaker has “reportedly gained 10.4 percentage points of CPU market share in the second quarter of 2017. ” In fact, this is the largest x86 CPU market share gain in the history of the company against the Chipzilla. Presently, AMD has a CPU market share of 31% which also happens to be the largest CPU market share level the company has held in over a decade.
Ryzen CPU had sky-high expectations at launch and it could not live up to the massive hype. Yet, it could be the most successful product launch for the semiconductor company. AMD could only manage to gain a 2.2% market share in Q1 2017 due to limited availability of Ryzen SKUs. But, with Ryzen processors and motherboards returning to full availability in Q2, the company gained 10%+ market share in a single quarter. The magnitude of such big gains is generally unheard of in the x86 CPU market. All this certainly reinforces the fact, that despite the initial disappointment with respect to expectations, AMD has a clear winner in Ryzen.
RX Vega gaming cards launch confirmed.
Amidst some rumors of a delay in the launch of Vega gaming cards, the Sunnyvale company confirmed the launch in a tweet.
We can’t wait to announce our new Vega products, including RX at this year’s #SIGGRAPH – make sure to follow us for more details. pic.twitter.com/LENxuPfj7n
— Radeon RX (@Radeon) July 1, 2017
A Wccftech post further confirmed the Vega 10 die size and also reports that RX Vega would be faster in gaming than Frontier edition. It quotes Raja Koduri – Chief Architect Radeon Technologies Group, “Consumer RX will be much better optimized for all the top gaming titles and flavors of RX Vega will actually be faster than Frontier version!”. All these developments could certainly boost investor sentiment towards the stock, which has recently been caught in a downward spell.
Playing AMD stock.
The technical outlook for AMD stock doesn’t look bright though. AMD share price had breached the crucial 20-day Simple Moving Average(SMA) in the last trading session. In June alone, the stock has bounced off the 20-day SMA after closing below it. It needs to be seen whether we could witness something like that again in July. Previously, the stock fell below its key long-term 100-day SMA in a bearish move. It has its next level of support at the 50-day SMA which presently stands at $11.95. The near-term bearish case has been further strengthened by a bearish Moving Average Convergence Divergence(MACD) crossover on June 30th. The MACD line fell below the signal line making a bearish crossover. With both popular momentum indicators, the Relative Strength Index(RSI) and Bollinger Bands not flashing an oversold signal, it is hard to make a good case for a quick rebound. The present RSI measure of AMD stock is 53.55, some good distance away from the oversold threshold of 30. Similarly, the share price is not anywhere close to the lower Bollinger Band to signal an oversold condition. If you’re looking for new trading ideas based on technical indicators, you should check out our daily stock trading ideas.
With the technicals not favoring AMD (NASDAQ:AMD), we could see more weakness in the stock. However, the recent positive developments are really welcome news for the company. A boost in investor sentiment owing to the latest good news could lift the stock irrespective of the technicals suggesting otherwise. A rebound seems to be around the corner but with a bearish technical outlook, one should be prepared for high volatility, for which AMD stock is widely known.
If you’re looking for fundamentally better tech stocks, check out Amigobulls’ top stock picks, which have beaten the NASDAQ by around 123%. We also have our picks from the auto sector, which have beaten the S&P 500 by a massive 207%.
