With a soaring performance on Friday, after Intel completely fumbled in their chip delay, AMD has fulfilled the promise (and then some) outlined here a little over a year ago.
With our focus now being on all of the investment opportunities presented as a result of The Great Acceleration Cycle, we moved on from AMD sometime ago. However, it's worth noting how far the stock has come in a year's time.
What follows is from May 17th, 2019 in a note titled Zenolytics Goes Bullish On AMD. Check that box:
The SOX has experienced a ruinous decline during May, falling 11% from its April high, while key components within the average such as XLNX and NVDA have been treated like scraps of red meat for the eagerly awaiting, starving population of bears.
In what has been a form of subtle bullish signalling, AMD has refused to to participate in this foray of self-loathing behavior among the semiconductor names, instead choosing to pin itself to recent highs, directly beneath a key trajectory point, while there are very obvious signs of accumulation taking place. In the category of technical imagery, this is the equity equivalent of increasing the throttle on the jets before takeoff.
In the midst of this bullish technical dance are a symphony of bubbling positive fundamental developments:
- Data center revenue has doubled year over year
- Gross margin expansion
- Market share expansion versus competitors, specifically: INTC and NVDA
- A growing list of competitive product offerings targeting high growth markets, including gaming and datacenter markets
- Potential immediate upside catalyst 2019 Computex Conference May 28-June 1, with the CEO of AMD giving the keynote address
Zenolytics is bullish on AMD seeing a test of the 2018 highs at $34 as being imminent, with the possibility of further gains entirely dependent on whether the market gains traction away from the current bearish regime.
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