IB Net Payout Yields Model

Invest like me - only at Covestor.com

AMD: Already Baked In

By -

 

  • AMD is now priced for serious weakness in the chip business while the data continues to support strong growth.
  • The company remains supply constrained with Intel still forecasting chip challenges until 2024.
  • The stock trades at only 15.5x '23 EPS targets, providing plenty of cushion for unexpected weakness.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Advanced Micro Devices (NASDAQ:AMD) has fallen a massive amount this year that any major cut to financial targets is already baked into expectations. Amazingly, the chip company has faced a multi-year issue with supply constraint problems, yet the stock market built a view of supply needing to already be cut. My investment thesis remains ultra Bullish on the chip company now trading below $90 due to the Intel (INTC) earnings disappointment.

Top trending article on Seeking Alpha. 


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - May 19

As SFC pointed out in this report and the follow up on May 11, AMD wasn't priced for the ongoing growth plan. A move above $100 sets up a bullish rally for the rest of the year. 

Finviz Chart

Comments

Post a Comment

Popular posts from this blog

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts struggle to make the bullish case on expen
Read more

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disclosure: No
Read more