AMD weekly special report based On 1.00 Lot Calculation:
AMD
- Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. The Company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services. AMD serves customers worldwide.
- AMD AND ARTIFICIAL INTELLIGENCE (AI) DEVELOPMENT (MI300 AI CHIP): According to Fierce Electronics, AMD has semiconductors ready to take on such work, including the MI300 coming later in 2023. AMD is looking to MI300 accelerators for large model AI applications in cloud data centers. AMD will launch MI300 in the second half of 2023, and will try to break Nvidia’s market dominance.
- GLOBAL ARTIFICIAL INTELLIGENCE CHIP MARKET TO GROW FROM 11.2 BILLION TO $263.6 BILLION: 2022- 2031. According to Allied Market Research, the Global Artificial Intelligence chip market is expected to grow at 37.1% each year on average until 2031.
ANALYSIS AND EVENTS:
- AMD AND MICROSOFT ENTER INTO A COLLABORATION ON ARTIFICIAL INTELLIGENCE (AI) CHIP DEVELOPMENT TO CAPITALIZE ON GROWING AI MARKET: According to reports, Microsoft and AMD are collaborating to develop a special purpose AI chip which Microsoft will use on developing its Artificial Intelligence infrastructure. The development is expected to have industry wide impacts, with AMD aiming to establish itself as a major chip provider.
- AMD CONTINUES TO BEAT EXPECTATIONS AFTER Q1 EARNINGS BEAT: AMD beat expectations across the board, with revenue coming in at $5.35B vs $5.3B expected. Earnings per share printed $0.60 vs $0.56 expected. The company also expects growth in the PC and Server segments throughout 2023, with the company also stressing focus on development on Artificial Intelligence chips.
- COMPETITIVE ADVANTAGE: AMDs pace of innovation, and brand strength along with its strong engineering team enables AMD to release its products faster than most of its competitors.
PRICE ACTION
- THE STOCK HAS TRADED AROUND 30% BELOW ITS ALL- TIME HIGH OF $164.36 (November 28, 2021). AMD was last trading around $115, and if a full recovery follows recent all- time highs, the stock could see an upside of around 42%, however, the price could also decline further.
#AMD, May 25, 2023
Current Price:115
|
AMD |
Weekly |
|
Trend direction |
|
|
164.00 |
|
|
150.00 |
|
|
135.00 |
|
|
98.00 |
|
|
95.00 |
|
|
90.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
49,000 |
35,000 |
20,000 |
-17,000 |
-20,000 |
-25,000 |
|
Profit or loss in €² |
45,647 |
32,605 |
18,632 |
-15,837 |
-18,632 |
-23,289 |
|
Profit or loss in £² |
39,616 |
28,297 |
16,170 |
-13,744 |
-16,170 |
-20,212 |
|
Profit or loss in C$² |
66,616 |
47,583 |
27,190 |
-23,112 |
-27,190 |
-33,988 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 13:00 (GMT+1) 25/05/2023
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