fbpx

Why AMD’s Stock Trends Are Bullish in November

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

From the first week of November onwards, AMD – a company that often gets overshadowed by the outsized interest exhibited in fellow chipmaker NVIDIA – has witnessed strongly bullish share price trends. The initial headwind for this was the unusually upbeat 2024 sales forecast by CEO Lisa Su on October 31st wherein it was stated that annual sales of more than $2 billion is being expected, with the company’s MI300 chips (designed to compete against Nvidia’s H100 chips) expected to bring in $100 million in the current quarter alone. That would make the MI300 the fastest product to ramp to $1 billion in sales in AMD’s history.

The second headwind came from a report by PC component market specialist Mercury Research, which contended that AMD had gained both client and server CPU market share in both quarter-over-quarter and year-over-year terms in Q3 2023.

Major CPU suppliers AMD and Intel had largely normalized sales trends in Q3 2023 as PC makers started to purchase processors for back-to-school and holiday seasons, whereas server makers ramped up production of machines based on the latest EPYC and Xeon platforms. In Q3, however, AMD’s gains had largely been at Intel’s expense.

The company’s server component sales has been primarily underlying factor behind recent headwinds: while AMD’s market share growth has been largely flat in the mobile and desktop space for over 3 quarters, the company’s server market share has witnessed a rapid ascent over the past two quarters.

Thus, major market participants seem to be concluding that the company has been carving its niche in the server space against Intel in the near term while laying enormous confidence in its ability to do the same against NVIDIA over the course of the next four quarters.

Over the past two full weeks, i.e. Week 45 ending November 11th and Week 46 ending November 19th, AMD’s share price has been seen marching largely in lockstep with that of NVIDIA. In Week 45, AMD rose four places to be 4th in yet another week of stock market directionality dominantly dependent on tech convictions:

Week 46 saw a massive rally into chipmaker stocks – at some expense to nearly all other tech stocks and despite a drop in overall market momentum – that even shook Intel’s stock price out from the doldrums.

With respect to AMD in particular, analyst consensus presently rests on the contention that both revenue and earnings will see a steady rise all the way through 2025 – which is yet another headwind into the stock’s price trajectory.

All in all, tactical opportunities abound as market breadth vanishes and traded volumes decline while residual conviction piles on into a select number of stocks. With respect to AMD, professional investors can lock into gains-boosting leveraged plays on the upside via AMD3 while a short position can be initiated without margin concerns via AMDS.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Related Posts

Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Violeta-540x540-1.jpg
Violeta Todorova
Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Violeta-540x540-1.jpg
Boyan Girginov
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Violeta-540x540-1.jpg
Sandeep Rao
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Violeta-540x540-1.jpg
Violeta Todorova
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
Violeta-540x540-1.jpg
Boyan Girginov
What is an ETF? How does an ETF work? Key characteristics of ETFs.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
What is an ETF? How does an ETF work? Key characteristics of ETFs.
Violeta-540x540-1.jpg
Pawel Uchman
A quick primer on leveraged instruments available in markets today.
A quick primer on leveraged instruments available in markets today.
Violeta-540x540-1.jpg
Sandeep Rao
A quick primer on leveraged instruments available in markets today.
A quick primer on leveraged instruments available in markets today.
A quick primer on leveraged instruments available in markets today.

Violeta Todorova

Senior Research

Violeta è entrata a far parte di Leverage Shares nel settembre 2022. È responsabile dello svolgimento di analisi tecniche e ricerche macroeconomiche ed azionarie, fornendo pregiate informazioni per aiutare a definire le strategie di investimento per i clienti.

Prima di cominciare con LS, Violeta ha lavorato presso diverse società di investimento di alto profilo in Australia, come Tollhurst e Morgans Financial, dove ha trascorso gli ultimi 12 anni della sua carriera.

Violeta è un tecnico di mercato certificato dall’Australian Technical Analysts Association e ha conseguito un diploma post-laurea in finanza applicata e investimenti presso Kaplan Professional (FINSIA), Australia, dove è stata docente per diversi anni.

Julian Manoilov

Marketing Lead

Julian è entrato a far parte di Leverage Shares nel 2018 come parte della prima espansione della società in Europa orientale. È responsabile della progettazione di strategie di marketing e della promozione della notorietà del marchio.

Oktay Kavrak

Head of Communications and Strategy

Oktay è entrato a far parte di Leverage Shares alla fine del 2019. È responsabile della crescita aziendale, mantenendo relazioni chiave e sviluppando attività di vendita nei mercati di lingua inglese.

È entrato in LS da UniCredit, dove è stato responsabile delle relazioni aziendali per le multinazionali. La sua precedente esperienza è in finanza aziendale e amministrazione di fondi in società come IBM Bulgaria e DeGiro / FundShare.

Oktay ha conseguito una laurea in Finanza e contabilità ed un certificato post-laurea in Imprenditoria presso il Babson College. Ha ottenuto anche la certificazione CFA.

Sandeep Rao

Research
Sandeep è entrato a far parte di Leverage Shares nel settembre 2020. È responsabile della ricerca sulle linee di prodotto esistenti e nuove, su asset class e strategie, con particolare riguardo all’analisi degli eventi attuali ed i loro sviluppi. Sandeep ha una lunga esperienza nei mercati finanziari. Iniziata in un hedge fund di Chicago come ingegnere finanziario, la sua carriera è proseguita in numerose società ed organizzazioni, nel corso di 8 anni – da Barclays (Capital’s Prime Services Division) al più recente Index Research Team di Nasdaq. Sandeep detiene un M.S. in Finanza ed un MBA all’Illinois Institute of Technology di Chicago.

Gold Retreats But Rally is Not Over

Copper Ready to Explode

Q2 2024 Market Outlook: Rocky Road Ahead

What is an ETF? (Exchange Traded Fund)

How Do Leverage Shares ETPs Trade in Multiple Currencies

Currency Impact

Build your own ETP Basket
Leverage Shares: Europe’s top leveraged and inverse ETP provider.
Main ETP benefits
Common investor questions

Ricevi la Newsletter

Rimani sempre aggiornato sugli ultimi avvenimenti. Accedi a contenuti premium e goditi in prima fila gli approfondimenti esclusivi tramite la nostra newsletter. In inglese.