Advanced Micro Devices (AMD +2.47%) is set to rally as the company expands its market share beyond the personal computer, data center, and gaming markets. Management is gaining traction in the ever expanding electric vehicle market. Analysts are busy adjusting estimates as this business venture will most likely boost its business prospects in the long term.
Electrek recently announced Tesla (TSLA +3.14%) has switched to AMD’s chipsets for its Model Y production vehicles in China.
With other chip makers rallying this morning, we will look for a trade as they reverse the recent selloff in the days ahead.
AMD Weekly Chart
Advanced Micro Devices is bounciung at the 10 week moving average. Momentum is bullish.
A bounce off this key support level, followed by conviction would confirm institutions are accumulating shares into year end.
AMD reported Q3 revenue growth on Oct. 26, helped by strong demand for the personal computer market, server chips and game consoles. Q4 sales guidance was also strong.
Advanced Micro Devices (AMD) has pulled back over the past 5 trading days, to a 50% Fibonacci zone, after clearing a double-bottom base with a 114.59 buy point. The 50d moving average is just below.
IBD – notes this morning.
- Composite Rating: 99
- Latest-quarter EPS % change: +78%
- Latest-quarter sales % change: +54%
- Five-year annualized EPS growth rate: 135%
- Annual return on equity: 36%
- Up/down volume: 1.2
We’re also considering adding to or starting new positions in Applied Materials (AMAT), Qualcomm (QCOM) and Microsoft (MSFT).
These observations were noted in the trading room during the LIVE broadcast.
Qualcomm
Qualcomm (QCOM) reported Q3 September 2021 earnings of $2.44 per share on revenue of $9.3 billion. Analysts estimated the company would make $2.26 per share on revenue of $8.9 billion.
Revenue grew nearly 12.0% on a year-over-year basis.
Investors and institutions helped fuel the recent breakout from a 10-month consolidation that started in early 2021.
Qualcomm is showing relative strength, consolidating it’s recent gains in a three week flag, just above the 21ema. Highlights below;
- Revenue increased 12% to $9.34 billion, helped by a surge in smartphone chip sales.
- Quarterly profit jumped 76% from the year-ago quarter.
- Chips designed to connect to 5G networks, grew 45% to $1.24 billion.
- Revenue guidance was above the consensus at $9.68 billion.
Join us today in the trading room for our LIVE broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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