• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

AMD's Dip Is a Time to Buy

AMD that's the rest of the story: After checking in earlier this week on the tech company, we feel traders should now see price weakness on Friday as temporary.
By BRUCE KAMICH
Nov 22, 2019 | 09:53 AM EST
Stocks quotes in this article: AMD

Jim Cramer sat down with Lisa Su, president and CEO of chipmaker Advanced Micro Devices Inc. (AMD) , on "Mad Money" Thursday night. Cramer has called Su a "hero" for her remarkable turnaround of the company.

Shares of AMD traded for just $1.80 when Su took over as CEO, but now trade over $30. Su said that rise in value is due to great products that have allowed the company to take market share, improve its balance sheet and steadily increase gross margins.

As AMD continues to operate in strong end markets, Su said, the data center market always needs more processing power and AMD is the "guts" of many large-scale data centers. The gaming market and PCs remain a huge market for chips, too, she added, noting that AMD has to make bets three to five years in advance.

Let's check and see again how the short- and long-term charts look. We looked at AMD on Tuesday and concluded that, "AMD is pointed up, but extended on the daily chart. Prices could dip or pullback for a couple of days before resuming their uptrend. Use a dip of one to three days to add to longs. The $65 area is our longer-term price objective."

In this daily bar chart of AMD, below, we can see that prices did dip on Thursday so we have the start of our "one to three days" dip. Prices closed near the middle of the range yesterday suggesting to us that buyers used the weakness to add to their long exposure. If buyers were not interested Thursday then AMD should have closed nearer to the lows of the day. AMD is still above the rising 50-day and the rising 200-day moving average lines. Trading volume was not out of the ordinary and the daily On-Balance-Volume (OBV) made only a minor dip. The Moving Average Convergence Divergence (MACD) oscillator is still bullish.

In this weekly bar chart of AMD, below, two more trading days did not alter the bullish alignment of prices and the indicators.

In this Point and Figure chart of AMD, below, we used weekly high/low price data and this chart shows a slightly higher price of $68 or $3 higher than the weekly close only chart we presented on Tuesday.

Bottom line strategy: Traders should continue to view price weakness on Friday and maybe Monday morning as an opportunity to go long AMD.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Fundamental Analysis | Investing | Technical Analysis | Semiconductors & Semiconductor Equipment | Technology | Mad Money | Executive Interview

More from Investing

The Best Trading Advice I've Ever Given

James "Rev Shark" DePorre
Dec 7, 2019 10:00 AM EST

The benefits of keeping your accounts as close to highs as possible are obvious but how do we actually do this?

TSMC Keeps Pushing the Envelope -- That's Good News for Apple, AMD and Others

Eric Jhonsa
Dec 7, 2019 8:00 AM EST

If TSMC makes good on its latest promise, it could hold onto its recently-won chip manufacturing lead for some time.

Jobs and Sentiment Provide Solid Backbeat for Next Week's 'Dance'

James "Rev Shark" DePorre
Dec 6, 2019 4:37 PM EST

In one week we should know whether the Dec. 15 tariffs will increase as planned.

As Samsung and Others Push the Envelope on Camera Tech, Chip Suppliers Benefit

Eric Jhonsa
Dec 6, 2019 4:31 PM EST

Samsung's Galaxy S11 will reportedly have a very powerful rear-camera system. And rivals aren't standing still, either.

Here Are 2 Fantastic Looking Charts

Timothy Collins
Dec 6, 2019 2:05 PM EST

Qorvo topped my scans and all cylinders are firing on Freshpet.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:06 PM EST CAROLYN BORODEN

    MRK and LVS Targets Coming Up

    View Chart » View in New Window »  LVS View C...
  • 12:01 PM EST BOB LANG

    Rolling up Apple

    just the other day we added some apple calls on th...
  • 12:24 PM EST GARY BERMAN

    Fibocall: The SPX-Cash Long-Term View

    You will hear from many analysts on TV screaming t...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login