ADVANCED MICRO DEVICES (#AMD) weekly special report based on 1 Lot Calculation:
ARTIFICIAL INTELLIGENCE (AI)
- AI: ACCORDING TO THE INTERNATIONAL DATA CORPORATION, COMPANIES WILL SPEND $500 BILLION BY 2027. AMD has tried to catch up with Nvidia and other competitors with their AI chips, which should help the company start raking in more than 4 billion dollars a year in sales.
AMD: THE COMPANY
- AMD is a chipmaker itself. According to hpcewire.com, the company’s is delving deeper into the AI world. For the first time, AMD announced the MI400 GPUs, which the company will release in 2026. AMD’s plans for 2024 include the MI325X GPU, followed by the 3-nanometer MI350 next year in 2025, with both based on HBM3E memory. Current series of MI300, that includes MI300X, MI300A and Instinct MI300 are well positioned to compete with Nvidia’s H100, which has been high on demand among tech companies for a long time.
AMD: SALES GROWTH AFTER EMBRACING A.I.
- REVENUE EXPECTATIONS: Revenue is expected to be roughly $6.7 billion in the third quarter. Chief Executive Officer Lisa Su said that AMD expects to generate more than $4.5 billion in sales from its MI300 products this year. That’s up from an earlier target of $4 billion. MI300 revenue topped $1 billion in the second quarter, and the company committed to rolling out new AI processors once a year. AMD’s data-center unit had sales of $2.8 billion in Q2, more than double the level from a year earlier.
AMD: EVENTS
- FRIDAY, AUGUST 23: GAMESCOM 2024. According to the videoardz.com, the event will take place on August 23. Last year, AMD released Radeaon RX 7800XT and RX 7700XT graphics cards at the same event.
- NVIDIA TO ANNOUNCE EARNINGS RESULTS (Q2) ON AUGUST 28, AFTERMARKET. The company is expected to print 28.653 billion dollars in revenue for Q2 (a new record high) and a net income of 15.884 billion dollars (a new record high). This would be up 111.94% in revenue year on year and an increase of 152.64% in net income year on year. (Source: Bloomberg Terminal). The NVIDIA’s results will be closely watched bt the AMD investors as well as they will get more clue about how the AI industry in general is prefroming at the moment.
ARM: PRICE ACTION
- THE STOCK HAS TRADED AROUND 36% BELOW ITS ALL- TIME HIGH OF $227.20 (March 8, 2024). AMD was last trading around $146, and if a full recovery follows to recent all- time highs, the stock could see an upside of around 56%. However, the price could decline further.
- ANALYSTS OPINIONS: Wells Fargo forecasts $205. HSBC forecasts $200. JPMorgan forecasts $180. Citigroup forecasts $210.
#AMD, August 16, 2024
Current Price: 146
|
AMD |
Weekly |
|
Trend direction |
|
|
227 |
|
|
200 |
|
|
170 |
|
|
123 |
|
|
120 |
|
|
115 |
Example of calculation based on weekly trend direction for 1 Lot1
|
AMD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
81,000 |
54,000 |
24,000 |
-23,000 |
-26,000 |
-31,000 |
|
Profit or loss in €2 |
73,735 |
49,157 |
21,847 |
-20,937 |
-23,668 |
-28,220 |
|
Profit or loss in £2 |
62,864 |
41,909 |
18,626 |
-17,850 |
-20,179 |
-24,059 |
|
Profit or loss in C$2 |
111,153 |
74,102 |
32,934 |
-31,562 |
-35,679 |
-42,540 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 15:30 (GMT+1) 16/08/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.