AMD deserves some love right now
I think AMD will go higher, and if it does not, BUY THE DIP, it DESERVES to rally. Why? My thoughts:
AMD smashed their earnings. Year ended December 26, 2020 diluted EPS comes out to be 2.06! (sourced from ir.amd.com, on a GAAP basis) Thus, the trailing 12 month PE is 88/2.06 = ~42.71
On a ttm PE basis, AMD has not been this cheap since the beginning of 2019, and we all know how its performed since then.
There is support around the 88 mark which is converging with major average (20,50,100). If there is a broader correction or market selloff, AMD could break support to the $73 area or the 200 day MA, whichever comes first. If that does happen, AMD's multiples will only become more attractive and I will buy that dip.
Subjectively speaking as a PC hardware enthusiast, AMD has been and is the superior option to intel for 2 years or so, since the launch of Ryzen. Their Ryzen series of CPU's offers at times twice the computing threads and more computer cores at the same price point compared to intel CPU's.
AMD at this time just has a better value proposition with regard to different CPU options, more cores for heavier workloads, and a newer architecture and chip size innovation.
AMD smashed their earnings. Year ended December 26, 2020 diluted EPS comes out to be 2.06! (sourced from ir.amd.com, on a GAAP basis) Thus, the trailing 12 month PE is 88/2.06 = ~42.71
On a ttm PE basis, AMD has not been this cheap since the beginning of 2019, and we all know how its performed since then.
There is support around the 88 mark which is converging with major average (20,50,100). If there is a broader correction or market selloff, AMD could break support to the $73 area or the 200 day MA, whichever comes first. If that does happen, AMD's multiples will only become more attractive and I will buy that dip.
Subjectively speaking as a PC hardware enthusiast, AMD has been and is the superior option to intel for 2 years or so, since the launch of Ryzen. Their Ryzen series of CPU's offers at times twice the computing threads and more computer cores at the same price point compared to intel CPU's.
AMD at this time just has a better value proposition with regard to different CPU options, more cores for heavier workloads, and a newer architecture and chip size innovation.
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