ADVANCED MICRO DEVICES (#AMD) weekly special report based on 1 Lot Calculation:
ARTIFICIAL INTELLIGENCE (AI)
- AI: ACCORDING TO THE INTERNATIONAL DATA CORPORATION, COMPANIES WILL SPEND $500 BILLION BY 2027. AMD has tried to catch up with Nvidia and other competitors with their AI chips, which should help the company start raking in more than 4 billion dollars a year in sales.
AMD: THE COMPANY
- AMD is a chipmaker itself. According to hpcewire.com, the company is delving deeper into the AI world. For the first time, AMD announced the MI400 GPUs, which the company will release in 2026. AMD’s plans for 2024 include the MI325X GPU, followed by the 3-nanometer MI350 next year in 2025, with both based on HBM3E memory. Current series of MI300, that includes MI300X, MI300A and Instinct MI300 are well positioned to compete with Nvidia’s H100, which has been high on demand among tech companies for a long time.
AMD: SALES GROWTH AFTER EMBRACING A.I.
- REVENUE EXPECTATIONS: CEO Lisa Su said the company aims to make over $4.5 billion in sales from its MI300 products this year, up from a previous target of $4 billion. MI300 sales were over $1 billion in the second quarter, and AMD plans to release new AI processors annually. The data-center unit brought in $2.8 billion in Q2, more than double compared to last year.
- NEXT QUARTERLY EARNINGS REPORT (Q3): EXPECTED ON OCTOBER 31, AFTERMARKET.
- AI SUPERCYCLE HAS JUST STARTED: CEO Dr. Lisa Su says her company is just getting started with the high-powered AI chip drops. Later this year, AMD will show off its MI325 AI chip followed by the MI350 next year and the MI400 in 2026.
AMD: EVENTS
- ADVANCING AI 2024 EVENT (October 10, 2024): AMD will host an in-person and live streamed event to showcase its next-gen Instinct™ accelerators and 5th Gen EPYC™ server processors, along with updates on Networking and AI PCs.
AMD: NEWS
- AMD WINS CONTRACT FOR PLAYSTATION 6 CHIPSET. AMD has secured the contract for the PlayStation 6 chipset, winning over Intel. Sony chose AMD for its backward compatibility and cost-effectiveness. With 54 million PS5 consoles sold, AMD likely earns around $250 per unit. This partnership, representing 20% of AMD's sales, underscores Sony's commitment to AMD and presents a strong possibility to deepen their relationship.
ARM: PRICE ACTION
- THE STOCK HAS TRADED AROUND 27% BELOW ITS ALL- TIME HIGH OF $227.20 (March 8, 2024). AMD was last trading around $166, and if a full recovery follows recent all-time highs, the stock could see an upside of around 37%. However, the price could decline further.
- ANALYSTS OPINIONS: Rosenblatt Securities forecasts $250. Citi forecasts $210. HSBC forecasts $200. Wedbush forecasts $200.
AMD, September 27, 2024
Current Price: 166
|
AMD |
Weekly |
|
Trend direction |
|
|
227 |
|
|
200 |
|
|
185 |
|
|
152 |
|
|
148 |
|
|
145 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
AMD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
61,000 |
34,000 |
19,000 |
-14,000 |
-18,000 |
-21,000 |
|
Profit or loss in €² |
54,679 |
30,477 |
17,031 |
-12,549 |
-16,135 |
-18,824 |
|
Profit or loss in £² |
45,589 |
25,410 |
14,200 |
-10,463 |
-13,453 |
-15,695 |
|
Profit or loss in C$² |
82,207 |
45,820 |
25,605 |
-18,867 |
-24,258 |
-28,301 |
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 11:17 (GMT+1) 27/09/2024
There is a possibility to use Stop-Loss and Take-Profit
- You may wish to consider closing your position in profit, even if it is lower than the suggested one.
- Trailing stop technique could protect the profit