AMD stock is in free-fall as of January 23, 2022, as worries emerge about the automotive sector.
AMD downgraded to Neutral from Overweight at Piper Sandler
Piper Sandler analyst Harsh Kumar downgraded AMD to Neutral from Overweight with a price target of $130, down from $140. The analyst is cautious on the broader automotive sector saying the pace of orders and strong pricing “may come into question” as supply normalizes in the second half of 2022. Once supply and demand hit parity, it will likely result in a slower pace of orders compared to the pace seen over the last few years, Kumar tells investors in a research note. His downgrade of AMD reflects concerns about a slowdown in the PC market during 2022, the “earnings and growth headwind” from closing the Xilinx deal, and the “broader market dynamics around high-multiple, high-growth technology stocks.” As such, he feels there is more downside risk than upside risk at this point in time.
Xilinx-AMD deal on course for approval from China’s SAMR, Dealreporter says
AMD’s (AMD) proposed acquisition of Xilinx (XLNX) is on course to be granted approval by China’s State Administration for Market Regulation, or SAMR, “shortly,” sources told Dealreporter, according to contacts.
AMD announces additions to AMD Radeon Pro W6000 Series graphics
On January 19, 2022, AMD announced new additions to the AMD Radeon PRO W6000 Series desktop and mobile workstation graphics lineup, designed to deliver exceptional performance, stability and reliability for professional users, including CAD designers, engineers and office knowledge workers. The new AMD Radeon PRO W6400 graphics card is built on the high-performance, energy efficient AMD RDNA 2 graphics architecture and advanced 6nm manufacturing process technology, with 16MB of high-bandwidth, low-latency AMD Infinity Cache memory technology acting as a bandwidth amplifier. Offering an ideal blend of performance and efficiency at an affordable price, the new graphics card is optimized for the requirements of today’s popular CAD and office productivity applications in a compact design that can be easily added to modern small-form-factor desktops.
“Work patterns have changed dramatically over the last year, requiring professional users to work more efficiently and complete projects faster than ever,” said Scott Herkelman, senior vice president and general manager, Graphics Business Unit at AMD. “The Radeon PRO W6400 is a powerful graphics card that harnesses the award-winning AMD RDNA 2 architecture feature set, enabling not only mainstream CAD professionals to produce incredible and complex designs, but also meeting the demands of today’s office workers who need to edit images, create presentations, collaborate and multitask more than ever. In addition, the new AMD Radeon PRO W6000 Series mobile graphics provide the ideal combination of performance and mobility to drive a range of workloads for professionals on the go.”
AMD price target raised to $150 from $145 at Cowen
On January 18, 2022, Cowen analyst Matthew Ramsay raised the firm’s price target on AMD to $150 from $145 and keeps an Outperform rating on the shares. The analyst told investors not to overlook its organic strength despite the deal delay. He said it shouldn’t distract from what remains one of the best organic growth stories in semis which is still in the middle innings of its growth.
AMD price target raised to $150 from $135 at Mizuho
On January 13, 2022, Mizuho analyst Vijay Rakesh raised the firm’s price target on AMD to $150 from $135 and keeps a Buy rating on the shares. The analyst gave his outlook across semis and automotive technologies and his top sectors in 2022 are memory, wafer fab equipment, data center, 5G and electric vehicles.
AMD Highlights Growing Cloud Momentum With New Amazon EC2 Instances for High Performance Computing
On January 12, 2022, AMD (NASDAQ: AMD) announced Amazon Web Services, Inc. (AWS) has expanded its AMD EPYC™ processor-based offerings with the general availability of the new Amazon EC2 Hpc6a instances, which are purpose-built for high performance computing (HPC) workloads in the cloud.
According to AWS, Amazon EC2 Hpc6a instances deliver up to 65 percent better price-performance compared to similar Amazon EC2 instances. Hpc6a will help customers run their most compute-intensive HPC workloads like, genomics, computational fluid dynamics, weather forecasting, financial risk modeling, EDA for semiconductor design, computer-aided engineering, and seismic imaging.
Throughout the HPC industry, there has been a growing preference for AMD as showcased by AMD EPYC processors powering 73 supercomputers on the latest Top500 list and holding 70 HPC world records1. The new Hpc6a instances bring the leadership performance and capabilities of 3rd Gen AMD EPYC processors to compute-optimized Amazon EC2 instances used for highly complex HPC workloads.
“Our processors power all levels of HPC, from exascale systems in research laboratories to flexible HPC cloud computing instances like the new Amazon EC2 Hpc6a instances. AMD EPYC processors provide a powerful solution for Amazon EC2 customers that need access to impressive HPC performance and cloud scalability for their workloads,” said Dan McNamara, senior vice president and general manager, Server Business, AMD. “Our work with AWS exemplifies our commitment to powering cutting edge technology in the HPC industry and helping customers find answers to the world’s most pressing questions.”
“Amazon EC2 Hpc6a instances, powered by 3rd Gen AMD EPYC processors, allow organizations the flexibility to run HPC workloads requiring an abundance of compute power, fast memory and storage, and high levels of inter-instance communication without the upfront cost of building and maintaining HPC infrastructure on-premises,” said David Brown, vice president, Amazon EC2, AWS. “We’re excited to continue our collaboration with AMD and add another crucial AMD EPYC instance to the Amazon EC2 portfolio.”
📺 Jim Cramer: Investors need to own Advanced Micro Devices
📉 AMD Stock Technical Analysis
The short-term trend is negative, the long-term trend is neutral. AMD is one of the better-performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 70% of 107 stocks in the same industry. AMD is currently trading in the middle of its 52-week range. This is in line with the S&P500 Index, which is also trading in the middle of its range. Prices have been falling strongly lately, it is better to avoid new long positions here.
There is a support zone ranging from 118.80 to 118.80. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also support at 95.58 from a trend line in the weekly time frame. Finally, there is support at 74.93 from a horizontal line in the weekly time frame.
There is a resistance zone ranging from 118.82 to 119.46. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also resistance at 147.21 from a trend line in the daily time frame.
The technical rating of AMD is bad and it also does not present a quality setup at the moment. Prices have been extended to the downside lately. AMD stock has a Setup Rating of 1. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when AMD stock consolidates and has a Setup Rating of 8 or higher.