Advanced Micro Devices, Inc. (AMD) shares rose more than 12% throughout Wednesday’s session following its semiconductor company reported better-than-expected financial results for the second quarter. Revenue climbed 26.1% to $1.93 billion during the quarter, beating consensus estimates by $70 million, and also non-GAAP earnings per share came in at 18 pennies, beating consensus estimates by 1 percent. The better-than-expected operation was driven by power from AMD’s Enterprise, Embedded, and Semi-Custom business components.
Many analysts increased their price goals on AMD stocks following the next quarter fiscal results. Bank of America declared its Buy rating and increased its price goal to $100 per share, mentioning secular tailwinds in center PC, gaming, and cloud sections. JPMorgan and other impartial analysts also increased their price goals but cautioned that the stock is trading with large expectations.
The chipmaker has witnessed considerable advantage since Intel Corporation (INTC) announced unexpected additional delays to its 7nm processors. Lync Equity Plans and other analysts think that the delay may fundamentally reshape the PC/server business that Intel has dominated the past several years and open up the door to rivals such as AMD.
From a technical perspective, AMD stock expanded its breakout from earlier this month to new highs. The relative strength index (RSI) moved farther into overbought territory with an understanding of 78.35, however, the moving average convergence divergence (MACD) expanded its bullish upswing. These signs suggest that the stock could observe some near-term consolidation, however, the intermediate-term trend remains bullish.
Dealers should see for consolidation over previous highs of $71.63 or trendline support at $57.20 within the forthcoming sessions. When the stock proceeds to split, traders can see a movement toward an ascending triangle price goal of about $79.75. When the stock breaks from trendline support, dealers can see a movement toward the 50-day moving average at $55.64 or reduced trendline support at about $51.80.
The writer holds no place in the stock(s) mentioned except during passively managed index funds.