Advanced Micro Devices, Inc [NASDAQ: AMD] has been performing well for some time now. The last time I covered it, AMD was trading at $31.80. In the article titled, Stocks To Watch: Advanced Micro Devices (AMD) Launches Ultimate PC Gaming Platform, we noted that AMD was a Stock to Watch. It hasn’t disappointed, and has been gaining bullish momentum ever since. At yesterday’s close, the stock was trading at $33.48, and it even hit a new high of $34.77, representing a potential gain of 9.3% since we last covered it.
At the moment, investors’ eyes are on its Q2 earnings report. Investors expect the company to report strong results, just like its competitor Intel, and other industry players like Texas Instruments. This bullish sentiment has seen some analysts raising their projections for AMD.
This mixed sentiment is a reflection of the environment that AMD is operating in at the moment. For instance, the trade war between the U.S and China has complicated the market for chip-makers, in China, one of their most important markets. On top of that, Chinese companies are getting more aggressive in the chip business. They are working hard to cut the gap that they have with U.S companies. A perfect example of this is Alibaba. The Chinese giant has launched its first core processor IP. The processor will be integrated into end-to-end 5G chips, and AI applications. This is likely to put more pressure on U.S chip makers, in the Chinese market.
For a company like AMD that it is trading at a decade’s high, it will interesting to see how it’s stock price will play out in the near-term.