World News – FI – Wait for withdrawal before buying shares of advanced micro-devices


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Many market commentators and analysts really doubt the end of the chipmaker’s growth Fortunately, for those who have been on AMD stocks for a long time, it doesn’t seem like sales are slowing down in the slightest

Short interest in the stock is also at an all-time low, and even the hottest bears have surrendered

The only thing playing against the stock is the stock price AMD stock still trades at 88 times the futures price / earnings ratio, a very rich valuation despite a recent pullback that made stocks a little more attractive

Ultimately, it’s a question of when is the best time to buy stocks, because fundamental strength will never be an issue with AMD

A recent dip in the ’70s must leave investors salivating, but as the stock is still trading more or less in line with consensus price targets, I would wait for stocks to lose value before adding more to your wallet Either way, you can’t go wrong with the company, given their history and strong track record of returns

Work at home stocks have recently lost some strength after a long period of bullish from mid-March AMD was among the victims, but the good thing is that the sale has sparked new interest in the company semiconductor Negative market sentiment has little to do with AMD, which is doing well despite bearish calls from a possible slowdown in sales

First, Republicans and Democrats struggle to accept terms of upcoming fiscal stimulus bill Markets hate uncertainty, and the sooner the bill passes the better

Second, the Trump administration has banned all downloads of TikTok and WeChat in the US, while Oracle (NYSE: ORCL) plays for TikTok’s parent ByteDance US-Tensions in China tend to have a anemic effect on the markets, and they certainly have done so here

Finally, we are seeing a spike in Covid-19 infections again, especially in Europe Given that we are still a few months away from a commercial vaccine, this is very bad news as it could lead to new lockdown restrictions and undo much of the progress made since reopens

While external factors have certainly helped push the stock down, AMD itself is growing at a very healthy pace Data from the first half of September shows Ryzen 3000 series SKUs are still selling, despite the imminent launch of its new generation Zen 3 processors

You would have thought that the demand for these chips would have diminished On the contrary, it looks like the 3000 series SKUs will continue to ship with the 4000 series Demand is driven by the demands of working from home, which should keep stocks moving for a few more quarters, at least

However, even beyond that, sales of new consoles, growth in data centers and upcoming chips will continue to increase AMD’s market share relative to Intel (NASDAQ: INTC)

This fall will see the renewal of one of the oldest tech rivalries: Sony’s PlayStation (NYSE: SNE) vs. Microsoft’s Xbox (NASDAQ: MSFT) Sony’s PlayStation 5 will launch on November 12 before the holidays year-end 2020 Meanwhile, Microsoft will release the latest version of the Xbox on November ten

AMD does not have a horse in this race as it supplies chips to both companies The only thing AMD is hoping for is that the Xbox manages to sell more units in this go-around

Since 2014, the company has failed to sell more than 10 million units And in 2019, there were only 5 million units sold Microsoft hopes to increase sales by offering financing plans at $ 25 and $ 35 per month for Xbox Series S and Xbox Series X, which will cost $ 299 and $ 499 respectively

Either way, the launch of the two consoles will provide significant tailwind for AMD going forward And while work from home trends may change in the future, console sales will remain strong

Last month was not a good month for AMD bears Short-term interest fell to a 10-year low as market sentiment turned bullish again Meanwhile, both Intel and Nvidia (NASDAQ: NVDA) See Accumulation of Short-Term Interest Thus, falling short-term interest is not a sector trend; on the contrary, it depends on AMD’s growth prospects

Usually, a stock that’s up nearly 73% year-to-date will have a lot of short-term interest, as people would bet on some degree of eventual market correction. However, that doesn’t look like the case here

AMD stock is a great investment and has been a part of it for many years There is no reason to think the company is likely to hit the roadside anytime soon But like I said stocks are a little too expensive for my taste at the moment

This is why I would wait until they cool down a bit before adding more stocks to my portfolio

At the date of publication, Faizan Farooque did not hold (neither directly nor indirectly) any position in the securities mentioned in this article

Faizan Farooque is a contributing author for InvestorPlacecom and many other financial sites He has several years of experience in stock market analysis and was a former data reporter at S&P Global Market Intelligence His passion is helping the average investor to make more informed decisions about their portfolio

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News from around the world – FI – Wait for a withdrawal before buying shares of advanced micro-devices



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