Advanced Micro Devices Stock News and Forecast: AMD opens lower alongside indices
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UPGRADE- AMD stock rose 3.8% on Friday but has opened the week on the wrong foot.
- Russia-Ukraine war continues to push markets lower.
- Advanced Micro Devices management announces $8 billion share buyback program.
Advanced Micro Devices (AMD) open lower on Monday, down $1.3% at $119.55. AMD shares were trading 2.4% lower in the premarket as major indices are down across the board due to increased uncertainty regarding the Russia-Ukraine war. NASDAQ futures are down 1.4% at the time of writing.
Advanced Micro Devices Stock News: Ukraine fiasco overshadows AMD share buybacks
During the previous week, the AMD stock price collapsed to $103 with Russia's invasion of Ukraine before entering into a major rebound that saw the stock trend up to $120. Peace talks are taking place on the Ukrainian border with Belarus, but markets remain spooked by Russia announcing over the weekend that its nuclear deterrent infrastructure has been placed on alert.
CEO Lisa Su's strategically-time announcement regarding a new $8 billion share repurchase program has steadied shareholders somewhat. The program is in addition to the $4 billion repurchase policy announced in May 2021. AMD stock can still benefit from the remaining $1 billion worth of repurchases left to carry out from that prior program. Taken together, investors can look forward to a total of $9 billion worth of buybacks, though the company did not provide a termination date for the program.
Analysts at Bank of America said last week that Advanced Micro Devices should benefit from the GPU upgrade cycle. They say it will be longer due to constrained supply and that both AMD and competitor Nvidia (NVDA) will see excellent growth in the second half of the year in this segment.
Money manager AllianceBernstein gave AMD its first outperform rating in a decade and a price target of $150.
"This is not the AMD of a decade ago," analyst Stacy Rasgon wrote. "And with the combination of continued stellar execution, increasingly bankable earnings power, and a recent sizeable pullback making valuation (dare we say?) downright attractive, we are, for the first time in almost a decade, pulling the trigger."
AMD key statistics
| Market Cap | $185 billion |
| Price/Earnings | 35 |
| Price/Sales | 8 |
| Price/Book | 18 |
| Enterprise Value | $182 billion |
| Operating Margin | 22% |
| Profit Margin |
19% |
| 52-week high | $164.46 |
| 52-week low | $72.50 |
| Short Interest | 6% |
| Average Wall Street Rating and Price Target | Buy, $153.59 |
Advanced Micro Devices Stock Forecast: AMD may drop below $110 before break out
A wedge formed on the daily chart due to February 24's $103 low. The apex of this wedge is $109-$110. Beginning on November 30, the top trend line drops to the February 10 high. This means that AMD stock needs to close above approximately $125 this week or $120 next week in order to make a move higher.
The bottom trendline only has two points of connection – January 28 and February 24 – which means a pullback would have AMD retouch the bottom trendline around $106. From there, it would make another attempt at the top trendline and maybe even the 50-day moving average above it at $128.25.
February 9's range high at $132.96 is still the upside target. The 50-day moving average cut below the 100-day moving average just above here. Support is at the 200-day moving average at $113, and then at the bottom trendline near $106.
AMD 1-day chart
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- AMD stock rose 3.8% on Friday but has opened the week on the wrong foot.
- Russia-Ukraine war continues to push markets lower.
- Advanced Micro Devices management announces $8 billion share buyback program.
Advanced Micro Devices (AMD) open lower on Monday, down $1.3% at $119.55. AMD shares were trading 2.4% lower in the premarket as major indices are down across the board due to increased uncertainty regarding the Russia-Ukraine war. NASDAQ futures are down 1.4% at the time of writing.
Advanced Micro Devices Stock News: Ukraine fiasco overshadows AMD share buybacks
During the previous week, the AMD stock price collapsed to $103 with Russia's invasion of Ukraine before entering into a major rebound that saw the stock trend up to $120. Peace talks are taking place on the Ukrainian border with Belarus, but markets remain spooked by Russia announcing over the weekend that its nuclear deterrent infrastructure has been placed on alert.
CEO Lisa Su's strategically-time announcement regarding a new $8 billion share repurchase program has steadied shareholders somewhat. The program is in addition to the $4 billion repurchase policy announced in May 2021. AMD stock can still benefit from the remaining $1 billion worth of repurchases left to carry out from that prior program. Taken together, investors can look forward to a total of $9 billion worth of buybacks, though the company did not provide a termination date for the program.
Analysts at Bank of America said last week that Advanced Micro Devices should benefit from the GPU upgrade cycle. They say it will be longer due to constrained supply and that both AMD and competitor Nvidia (NVDA) will see excellent growth in the second half of the year in this segment.
Money manager AllianceBernstein gave AMD its first outperform rating in a decade and a price target of $150.
"This is not the AMD of a decade ago," analyst Stacy Rasgon wrote. "And with the combination of continued stellar execution, increasingly bankable earnings power, and a recent sizeable pullback making valuation (dare we say?) downright attractive, we are, for the first time in almost a decade, pulling the trigger."
AMD key statistics
| Market Cap | $185 billion |
| Price/Earnings | 35 |
| Price/Sales | 8 |
| Price/Book | 18 |
| Enterprise Value | $182 billion |
| Operating Margin | 22% |
| Profit Margin |
19% |
| 52-week high | $164.46 |
| 52-week low | $72.50 |
| Short Interest | 6% |
| Average Wall Street Rating and Price Target | Buy, $153.59 |
Advanced Micro Devices Stock Forecast: AMD may drop below $110 before break out
A wedge formed on the daily chart due to February 24's $103 low. The apex of this wedge is $109-$110. Beginning on November 30, the top trend line drops to the February 10 high. This means that AMD stock needs to close above approximately $125 this week or $120 next week in order to make a move higher.
The bottom trendline only has two points of connection – January 28 and February 24 – which means a pullback would have AMD retouch the bottom trendline around $106. From there, it would make another attempt at the top trendline and maybe even the 50-day moving average above it at $128.25.
February 9's range high at $132.96 is still the upside target. The 50-day moving average cut below the 100-day moving average just above here. Support is at the 200-day moving average at $113, and then at the bottom trendline near $106.
AMD 1-day chart
Like this article? Help us with some feedback by answering this survey:
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