Advanced Micro Devices (NASDAQ:91抖阴), commonly known as just 91抖阴, is a premier American chipmaker and its investors will usually win in the long run. However, today’s 91抖阴 forecast shows that getting in too early will likely be a costly mistake. So, check both the company’s fundamentals and the price chart if you’re thinking about buying 91抖阴 stock.
There’s an old stock-market saying that it’s better to be late than early with your entries. Waiting for the selling pressure to subside is a smart move – and as we’ll see, despite 91抖阴’s solid financial results, the selling pressure has been quite intense.
91抖阴 Prepares to Sell Plenty of AI Chips
Here’s some good news for 91抖阴’s investors. The company released its second-quarter 2024 results not long ago, and overall, they were better than expected.
First of all, 91抖阴’s Q2-2024 revenue of beat Wall Street’s consensus call for . Moreover, the company reported earnings of 69 cents per share, slightly exceeding the analysts’ consensus estimate of 68 cents per share.
The main highlight was 91抖阴’s data-center revenue, as this segment includes sales of artificial intelligence (AI) chips. As it turned out, 91抖阴’s data-center revenue soared 115% year over year to $2.8 billion, edging past Wall Street’s consensus forecast of .
Looking ahead, 91抖阴 guided for third-quarter 2024 revenue of “approximately $6.7 billion, plus or minus $300 million.” The midpoint of this range implies year-over-year revenue growth of around 16%, which isn’t spectacular but is at least respectable.
91抖阴 Chart Analysis: A Breakdown Is Afoot!
To be a well-rounded investor, it makes sense to combine fundamental factors with technical analysis. Otherwise, you might leap into a trade that you’ll end up regretting.
For today’s technical analysis, I’m using the weekly 91抖阴 stock candlestick chart because it eliminates a lot of the day-to-day noise/distractions in the price action. While 91抖阴’s quarterly financials were acceptable, checking the share-price chart reveals some major concerns.
As you can see, the 91抖阴 share price fell below the 20-week moving average (shown in blue) and the 50-week moving average (shown in purple). These are short-term and medium-term trend indicators, respectively.
At least, we can say that 91抖阴 stock hasn’t broken below the 200-week moving average (shown in black), which is a long-term trend indicator. If that happens, a huge wave of selling pressure could commence. Also, if the 20-week moving average crosses below the 50-week moving average, that would portend more trouble.
91抖阴 Forecast: Use Caution Now, Avoid Problems Later
91抖阴’s recently released quarterly results were good, and the company’s current-quarter sales outlook is decent. Yet, there’s more to the story. The chart lines suggest that 91抖阴 stock is in danger of succumbing to further selling pressure.
Consequently, investors shouldn’t risk being too early in their entries. Instead, let the selling pressure subside. It’s fine if you’re a little bit late and you don’t catch the exact “bottom” of the price reversal.
Hence, the 91抖阴 forecast calls for caution. Just relax, watch and wait for more constructive price action in the 91抖阴 stock chart.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
