AMD Stock Preparing for Future Given Past Performance

The American semiconductor giant Advanced Micro Devices (NASDAQ: AMD), popularly known as AMD, seems to be in good shape. AMD stock has continued to stay up for about a month now. This remained the case following the AMD Q3 2022 earnings release. The reports showcased the positive growth in the previous quarter and had a positive outlook for the quarter coming ahead.

Advanced Micro Devices had shown significant performance in the past. While working in its computing and graphics and enterprise, embedded and semi-custom segments, it holds potential to attain more highs. Semiconductor applications remained the one of the strong points of the company which includes development of microprocessors, GPUs, chipsets, data centers, etc. along with the gaming consoles technology.

Such a strong profile makes the company a strong contender and the AMD stock price is worth considerable.

AMD Stock Price Movement on Chart

AMD stock price moves throughout the bearish downward channel. buyers struggle in this downward parallel channel since a 52-week high. Buyers’ struggle is going to be successful as the share price overcomes the selling zone. However, for the last three weeks, price trend shows sideways momentum, in fact, weekly candlestick shows inside candles. If buyers successfully manage a bullish breakout then conceptual round level will be the next key selling area.

source: TradingView

AMD Stays Strong in Q3 and Ready for Q4

Last earnings release showcased the revenue to remain about 5.57 billion USD in Q3 2022 which remained 29% up from last year. Moreover the strong balance sheet of AMD showcased the cash and equivalents worth 5.59 billion USD while the total debt amount was 2.57 billion by September 2022. Operating cash flow for the company reported 965 million USD with 842 million USD worth free cash flow.

The positive quarterly report reflected on the company’s stock price. Currently it is trading at 74.98 USD at the time of writing. AMD stock price remained 24.74% up, relatively higher than the overall NASDAQ Composite index with 10.81% up in the month timeframe.

In addition, AMD holds a relatively strong outlook for future performance. It expects 5.5 billion USD in revenues for Q4 2022, which would be 14% increase from last year. The yearly revenue, however, for 2022 is expected to come out 23.5 billion USD, about 43% up year over year.

Analysts Optimist for AMD Stock Price

Given the performance of semiconductor giant and evolving related sectors, including gaming, that company holds expertise in, analysts have sheer optimism for AMD stock price. The stock price of the 120.89 billion USD market cap company is expected to reach between 87.63 USD to 99.88 USD.

While many think that the stock is worth buying given the current price is quite lower than its intrinsic value beyond 110 USD.

The upcoming year is likely to turn out better given the ventures the company is expanding into. AMD is preparing to strengthen its gaming domain with a strong foothold with three Ryzen 7000 X3D CPUs released. Moreover, the collaborations with prominent companies like Viettel High Tech for deploying 5G network in Vietnam also adds value in profile.

Disclaimer

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