NVDA Ascending after CHIPS before earningsNASDAQ:NVDA
Fundamentals- CHIPS in effect booms economy for NVDA
as the USA tries to diversify from Taiwan semi-conductor dependence
while China looms large
Technical: Earnings coming ascending trendline with
increasing relative strengh. Sitting on the support of the
POC of the volume profile.
AMD
AMD - Ain't Moving Down!Advanced Micro Devices
Short Term
We look to Buy at 94.20 (stop at 87.55)
Broken out of the channel formation to the upside. Reverse trend line support can be seen at 95.00. There is scope for mild selling at the open but losses should be limited. Preferred trade is to buy on dips. Dip buying offers good risk/reward.
Our profit targets will be 109.19 and 119.18
Resistance: 110.00 / 125.00 / 163.00
Support: 90.00 / 85.00 / 72.00
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AMD uptrend: Change raise up to 40% after earningEnterprise systems’ revenues were up in the mid-teens on a year-over-year basis, owing to the strength in data center and enterprise computing (hypothesis from TXN earning result issued today). Raise high momentum to push AMD earning/ price come back higher and higher
1- From value trading point of view: B2C market: Big guys earning report not really bad. B2B market still have room to growth.
2- From Tech trading point of view: Small trader short sell under trap already. (Just kidding) but from RSI feedback today, I have seen some positive moving as chart mentioned
AMD is a Beautiful Opportunity - Earnings Report HighlightsSince the beginning of the second quarter, chip stocks have been steadily rising, amid deteriorating indicators of an economic downturn, particularly in the consumer end market. The Philadelphia Exchange Semiconductor Index (PHLX) rebounded more than 20% in July after falling almost 40% in the first half of the year. To a similar degree, AMD (NASDAQ:AMD) has surged in July, marginally beating the PHLX for the month but still below the benchmark year to date. Despite industry leader and major rival Intel's (INTC) disappointing quarterly earnings and future outlook last week, the rally maintained its pace.
Investors are getting more optimistic about AMD's resiliency in the wake of Intel's recent setback, which suggests that the former is becoming a more major participant in both the high-performance PC and data centre CPU markets. T , the company's EPYC server processors are making significant headway into the data centre and high-performance computing (HPC) segments, while its powerful next-generation PC processors such as the Radeon GPUs and Ryzen CPUs are also drawing attention from Intel.
Although most chip manufacturers that have reported second-quarter results so far are warning of a plausible decline in demand and inventory build-up - especially on consumer-centric products like memory chips used in consumer electronics products, the market for semiconductors used in data centres, auto, and premium equipment like enterprise workstations remains strong. As a result, AMD benefits from positive upswings as it strengthens its technological lead in data centre, high performance PCs, automobiles, and, more recently, telecom infrastructure prospects.
Recent market trends, which support a healthy demand environment for AMD's primary data centre end market, as well as indicators of significant growth in market share, lead to the chipmaker's sales and profits beat streak continuing. The following study will go deeper into three key factors supporting AMD's long-term upsides and outperformance in the face of near-term industry challenges: First, declining consumer spending, Second, data centre growth, and Third, solid fundamentals.
Given its high-growth potential, AMD is presently trading at roughly 5.5x projected EV/sales, which is still a big discount to the fabless semiconductor peer group mean of about 5.9x. Given that the company is currently lagging the PHLX, AMD remains a good buy at the moment. With investors incentivizing those who have proven perseverance this earnings season – as evidenced by last week's rigorous big tech earnings results, which supported the tech-heavy Nasdaq 100 add $1.5 trillion in market value in July – AMD's eagerly anticipated solid quarterly showing makes a beneficial near-term precursor in reigniting the stock for persistent uptrend momentum.
Demand from Consumer Spending prospective
Alarms from the industry about declining chip demand from consumer end markets, especially those found in consumer electronics such as cellphones and Computers, are becoming louder, reflecting prior investor fears about a declining semiconductor cycle after an outstanding growth.
PC shipments globally have already begun to slow in the first half of the year, with first-quarter volumes falling 6.8 percent year on year to 78 million units, and second-quarter volumes falling more than 15 percent to 71 million units, as consumption and investment spending power dampens due to rising rising inflation. Global PC shipments are expected to fall by 9.5 percent this year, driven by a 13.1 percent reduction in consumer PCs and a 7.2 percent loss in corporate PCs. As a result, demand for similar chips is likely to fall by more than 5% this year. Conversely, semiconductor demand from phone manufacturers is predicted to rise by just little more than 3% this year, a major deceleration from the 25% surge seen in 2021.
Nonetheless, despite evidence of a weakening consumer end market as consumers reduce discretionary spending due to relatively close economic uncertainty, AMD's growth in this sector is projected to be robust given its minimal direct exposure. Given observations that the present PC market is migrating to higher end and more expensive sectors, supported by commercial purchases to suit the concept that hybrid and remote work is the new future, the chipmaker is confident in its ability to overcome near-term difficulties. In particular, AMD expects persistent business demand for high-performance workstations to enable a "hybrid-virtual" work environment to largely offset any near-term repercussions on consumer-centric gaming PC sales owing to unpleasant economic difficulties in the consumer end market.
This view is reinforced by recent results provided by PC makers such as Microsoft (MSFT), which verified that sales growth for its Surface devices were mostly robust in the second quarter due to sustained corporate demand. Other PC makers, such as Dell (DELL), have made similar remarks about the strength of enterprise demand, owing to the growing urgency of "modernising the technology infrastructure" to ensure intelligence, cyber-resiliency, automation, and multi-cloud adaptability" in the new baseline of remote co - operation.
While AMD has chosen to be conservative in terms of PC prospects for the current year, indicating a year-on-year reduction in negative single digits for related sales, the firm is projected to recuperate some market share by selling its flagship, more costly models. AMD also has a number of commercial machines in the works for this year, including the recent debut of the (Ryzen 6000 Series) processors for upscale laptop applications, which maintains good PC performance for 2022 despite a wider market slump. With seasonal demand from back-to-school and Christmas sales in the second half of the year, AMD continues on track to increase its PC market share.
How Data Center is ultimate strength
Global demand for data centre processors will stay high in the next years, as cloud computing remains a crucial necessity in the business sector, with no indications of abating. The market for data centre processors, in particular, is forecast to grow by at least 20% this year, more than offsetting any consumer-related slowdown that AMD may see owing to near-term macroeconomic downturn.
The positive trends have been further supported by the rising urgency of business cloud migration to accommodate a new era of remote working, as indicated in the previous section. More than half of firms anticipate that cloud adoption would account for a substantial share of investments over the next two years, propelling the worldwide cloud-computing industry to more than $800 billion by 2025. Meanwhile, the market for Artificial intellegence hardware, such as data centre chips like AMD's EPYC server CPUs, is predicted to grow at a CAGR of 42% to $1.7 trillion by the end of this decade.
Even in the face of a possibly tightened economic situation in the near future, these numbers continue to support a solid demand scenario for both cloud service providers and chipmakers like AMD. Furthermore, AMD's ongoing commitment to innovation helps the company's long-term position and market share in data centre possibilities. AMD's EPYC server CPUs have been a flagship product in recent times, driving the firm's break-out growth and data centre market share increases. EPYC CPUs are currently in their 4th generation, with a family of four chips encompassing (Genoa, Genoa-X, Bergamo, and Siena), all of which are geared to optimise performance across a wide range of use cases, from cloud applications to communication system and telecom installations.
Server processors have grown into some of the most powerful and fastest CPUs utilised in HPC designs today. AMD's EPYC CPUs may now be found in 72 of the world's top 500 Fastest Super-computers, a threefold increase from 2020. The EPYC processors' dominance on the (Green-500) list attests to its power efficiency for sophisticated tasks. Till now, AMD's EPYC processors power 80 percent of the world's most efficient supercomputers, putting the company's HPC competency on able to compete with legacy competitor Intel's. AMD's growing strength in data centre and HPC prospects are also supported by key rival Intel's admission of (server market share loss) last week, which provide substantiated support for AMD's long-term growth path. All whilst, AMD's Gen 4 EPYC server cpus are well-positioned to benefit from Intel's delayed launch of its next-generation Sapphire Rapids server processor cores, which threatens to further weaken the other's market dominance.
Fundamentals Strength
Over the previous seven quarters, AMD has had a constant record of good sales and profit surprises. And we anticipate that AMD's 2Q22 earnings will be similarly robust, with top- and bottom-line growth driven by ongoing market share gains and the ramp-up of innovative products to scale.
Top-line, AMD continues to illustrate its ability to capture market share gains in an extremely competitive industry by strengthening its technological capability to attract demand and growing its total addressable market (TAM) through recent acquisitions such as Xilinx and Pensando. Especially, the merging of Xilinx and Pensando is intended to provide new synergies when combined with AMD's current competence in CPUs and GPUs, propelling the firm into new excursions to diversify its income portfolio.
AMD Total Revenue vs Total operating expenses
Free Cash Flow
$AMD falling chopstick breakout?AMD breaks out from its 3 day losing streak to 4 day winning streak after the feed week and blue chips earnings. AMD looks like a falling chopstick at 4hr chart. but also clearly visible its lower high movement. with earnings coming up tomorrow after market close. i expect $AMD to pull back along with the overall market as it starts to cool off its steam from 4 day winning streak. or it can go sideway like consolidation and make little move before the market close. AMD could breakout to $100 if they beat the Wall Street EPS estimate with positive guidance.
here my price target for $AMD for monday 08/02/22.
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For calls; buy above $98.30 and sell at 100.36 or above
For puts, buy below 96.50 and sell at 93.95 or below
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AMD Earnings UpcomingDepending on the markets reaction to AMD's earnings after the close today, we could see AMD show confirmation of a breakout from this downwards channel. Relative strength sitting at resistance levels in respect to historical "tops", looking to see if a breakout in relative strength can also provide confirmation after ER. Directional movement also positive.
Negative ER reaction I believe would continue AMD back within its downward channel to look for support near $87
AMD (Daily): A very short update!First, lets take a look at the last update to see how well its playing out.
Welp, it looks like a strong start to the next move higher to complete minor wave 5. Price just made a successful 5 wave move higher to complete a possible circle wave i after showing positive divergence on the daily MACD and holding the blue support box.
Can AMD still go lower? Sure. In fact, price is expected to retrace the circle wave ii. The yellow retracement lines show circle wave ii support between at $80-$84ish. Price also needs to make another 5 wave move higher to complete wave (i) of circle wave 3 (probably around $102), then hold wave (ii) support of circle wave iii (not shown yet).
So whats the plan? It might not be a bad idea to start layering into a position from around $87 to $80.00 with a stop around $80-$76. But it is probably best to wait for the (i)-(ii) of circle iii for the highest probability trade (again, not shown yet). Although this price action deserves some respect and a close eye, caution is warranted until price holds circle wave ii support and makes a new high for wave (i) of circle wave iii.
#GoodLuck
#LongAMDBias
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#ReadtheWavePrincple
$AMD ahead of earnings$AMD had an impressive active sequence in July and managed to clear the recent channel high around $91.5. Earnings are due tomorrow after the closing bell. The stock is priced for perfection given the recent move. Other chip makers delivered mixed results so it will be very important to see if $AMD can continue to outperform in the long term. Guidance for the current quarter will be an important talking point. From a technical perspective, $100-110 is in play in case of a strong beat. For support, in case it breaks $90, see if $85-88 holds in order for the pattern to remain somewhat constructive. Buying some call spreads for earnings may be the best alternative. Buying the $100 and selling the $110 calls may be a good risk/reward opportunity in case you want to play the earnings report. Otherwise, wait for the first reaction once the report hits the tape.
GBPUSD Longs to continueIn this video we breakdown from daily down to 5 min what transpired last week as well as give you a trade idea for what happens next week!
The market should continue longs after a retracement to the extreme.. This is also supported by dxy going down given the expected news of the interest rates, and eveybody understanding we are in recession. Course always DYR and trust your own analysis!
NIO - The Top is in. Lower Prices AheadTo no surprise NIO like most of equities is vulnerable to the increasing pressures of inflation and the feds responsibility interest rate hikes.
Technically we see NIO is a BEAR FLAG structure right at the $20 Key Level
Making NIO more interesting is that this structure is formed with LESS participation on the second attempt at $20
Meaning NIO made a HH (Higher High) with LESS participation, So... we have a M top inside a bear flag
We love seeing these patterns as it brings confluence to much lower prices.
Ideally we would like to see the market open Tuesday Strong then position in NIO for additional confirmation however NIO is a sell NOW.
We have positions open and running so we are going to wait on ideal to enter.
Price targets on NIO would be a 3 Month contract down to $10/11 or 50% off.