Advanced Micro Devices, Inc. (AMD)
The company is trading 64% below its 52-week high and is trading on par with the consensus mean target price of $2.85 for the company. AMD was trading Tuesday for $2.82, up over 5% for the day.
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Fundamental Review
AMD has some fundamental positives. EPS is expected to grow by 100% next year. The company has a price to sales ratio of .41. AMD has $1.40 in cash per share. Insider ownership is up 68% over the past 6 months. EPS is up 76% quarter over quarter.
Technical Review
Technically, the stock actually looks good here. The stock is in an uptrend and has recently broken through major resistance levels.
My Take
Microsoft (MSFT) sent out an invite Wednesday to a May 21st event pretty much stating the next Xbox will be unveiled. The rumor mill suggests the console will have an 8-core AMD CPU, similar to the chip in Sony's (SNE) PS4. All this recent news of AMD chips bodes well of the stock. I posit the risk/reward equation favors longs at this point. I like the stock here.
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