Advanced Micro Devices (AMD)

Feb 25, 2022Trade Ideas

Keep an eye on Advanced Micro Devices (AMD).

After pulling back with the markets, the tech stock appears to have caught double bottom support. It’s also oversold on RSI, MACD, and Williams’ %R. From a current price of $112.69, we’d like to see AMD test prior resistance around $133, near-term.

Helping, the company just authorized an $8 billion share buyback program.

“We are pleased to expand our share repurchase program based on the strength of our balance sheet and expectations for future free cash flow generation,” said AMD Chair and CEO Dr. Lisa Su. “With our strong financial performance, we are able to increase investments to drive long-term growth while returning additional value to our shareholders.”

Plus, AMD recently crushed earnings.

For the quarter, AMD posted revenue of $4.8 billion – up 49% year over year, with non-GAAP profits of 92 cents a share. That beat expectations for $4.5 billion on profits of 76 cents. For all of 2021, the company had revenue of $16.4 billion, up 68%, with non-GAAP profits of $2.79 a share, up from $1.29 a year earlier.

Going forward, the company expects to see Q1 revenue of $5 billion, up 45% year over year. It also sees non-GAAP gross margins of 50.5% for the quarter, up 50% quarter over quarter. The Street was looking for $4.3 billion in revenue, and profits of 70 cents.

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