AMD rises to $649, while Lisa Su is still working to secure capacity
This week, I’m more inclined to see AMD continue moving higher. Lisa Su said yesterday that the company plans to significantly increase chip supply next year and is still working with supply-chain partners to coordinate capacity. That makes me somewhat optimistic, as it suggests the company remains confident in future demand. This is about AMD stock on the Nasdaq.
According to Reuters, Su’s trip to Taiwan is aimed at coordinating CPU and GPU production, and she is also seeking supplies from memory makers. AMD has already increased supply this year and wants to expand further next year. If demand holds up, shipping more products could bring in more revenue. But this plan has not yet translated into next year’s sales.
In its second-quarter results announced in August, data-center revenue came to $6.718 billion, up 107% year over year. AMD said demand was strong for both EPYC server CPUs and Instinct GPUs. That growth is already reflected in revenue, and next I want to see whether expanded capacity can sustain it. Those older results help explain why the company wants to expand capacity, but they shouldn’t be treated as evidence that it landed new orders yesterday.
AMD rose 2.80% yesterday to close at $649.42, with volume markedly higher than in the previous session. The closing price also moved above last Friday’s intraday high. The rise was backed by trading volume, and the stock held onto its gains by the close—another reason I think it could keep strengthening. It was around $647 in premarket trading today, a modest pullback for now.
StreetInsider reported yesterday that Mizuho analyst Vijay Rakesh raised his price target from $580 to $705 and maintained an Outperform rating. $705 certainly looks appealing, but that is an analyst’s estimate, not a price AMD is guaranteed to reach this week. Whether deliveries keep pace and costs rise will both affect how much the company ultimately earns.
One thing keeping me cautious is the Federal Reserve meeting minutes, due at 2 a.m. Beijing time tomorrow. If the market interprets them as signaling a stronger inclination to raise rates, investors may be willing to pay less for future growth. If AMD falls back toward $630 and continues to weaken, I’ll focus on the pullback. That area is close to yesterday’s low and the previous session’s close; if the stock falls that far, its price action after the rally will be less convincing.
When AMD reports earnings again on November 3, what I’ll most want to know is how much of this demand has already translated into revenue. Capacity expansion gives me reason to be optimistic, but deliveries and profits still need to follow through.
#AMD #美股 #AI chip
This week, I’m more inclined to see AMD continue moving higher. Lisa Su said yesterday that the company plans to significantly increase chip supply next year and is still working with supply-chain partners to coordinate capacity. That makes me somewhat optimistic, as it suggests the company remains confident in future demand. This is about AMD stock on the Nasdaq.
According to Reuters, Su’s trip to Taiwan is aimed at coordinating CPU and GPU production, and she is also seeking supplies from memory makers. AMD has already increased supply this year and wants to expand further next year. If demand holds up, shipping more products could bring in more revenue. But this plan has not yet translated into next year’s sales.
In its second-quarter results announced in August, data-center revenue came to $6.718 billion, up 107% year over year. AMD said demand was strong for both EPYC server CPUs and Instinct GPUs. That growth is already reflected in revenue, and next I want to see whether expanded capacity can sustain it. Those older results help explain why the company wants to expand capacity, but they shouldn’t be treated as evidence that it landed new orders yesterday.
AMD rose 2.80% yesterday to close at $649.42, with volume markedly higher than in the previous session. The closing price also moved above last Friday’s intraday high. The rise was backed by trading volume, and the stock held onto its gains by the close—another reason I think it could keep strengthening. It was around $647 in premarket trading today, a modest pullback for now.
StreetInsider reported yesterday that Mizuho analyst Vijay Rakesh raised his price target from $580 to $705 and maintained an Outperform rating. $705 certainly looks appealing, but that is an analyst’s estimate, not a price AMD is guaranteed to reach this week. Whether deliveries keep pace and costs rise will both affect how much the company ultimately earns.
One thing keeping me cautious is the Federal Reserve meeting minutes, due at 2 a.m. Beijing time tomorrow. If the market interprets them as signaling a stronger inclination to raise rates, investors may be willing to pay less for future growth. If AMD falls back toward $630 and continues to weaken, I’ll focus on the pullback. That area is close to yesterday’s low and the previous session’s close; if the stock falls that far, its price action after the rally will be less convincing.
When AMD reports earnings again on November 3, what I’ll most want to know is how much of this demand has already translated into revenue. Capacity expansion gives me reason to be optimistic, but deliveries and profits still need to follow through.
#AMD #美股 #AI chip
