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Advanced Micro Devices, Inc. (NASDAQ:AMD) Shares Continue to Signal New Tone Under the Surface of the Tape

Advanced Micro Devices, Inc. (NASDAQ:AMD) has started to accelerate higher since the “important day” we noted last week. That day was last Tuesday, when the tech sector was absolutely crushed, and yet, somehow, on no new news catalysts, we saw AMD shrug off the broad market shellacking and rally as much as 14% in a single intraday run from morning lows to afternoon highs.

It was a telling display that we characterized as a signal of seller exhaustion – perhaps the most important intermediate-term technical signal when searching for viable bottoms.

Advanced Micro Devices, Inc. (NASDAQ:AMD) has followed through on the promise of that tape, blasting off again on Tuesday of this week, closing the session up nearly 5% on very strong volume.

Once again, we could find no smoking gun lying around to take credit for the action. However, we would note a piece put out on an Amazon AWS blog noting that Amazon is launching EC2 instances powered by Arm-based AWS graviton processors.

That has consequences for AMD and may give it a further advantage over INTC, especially given the continued issues INTC is experiencing as it tries to line up its transition in epochal systems.

The announcement could hand AMD another major slice of the market given that initial impressions suggest a tailor-made opportunity for AMD to pressure INTC out one of the most lucrative contracts in the game and the notion that a reboot along the ARM axis puts more of that game in the data center fold, where AMD is now gaining significant traction with its new EPYC offering.

On a technical basis, Tuesday marks the first time that AMD shares have closed decisively above the stock’s 20-day exponential moving average since October 1.

The move screams of gap-fill potential, as we begin to heal the gash on the chart from the company’s kitchen sink report a month ago.

A move back above the close of October 24 would erase all of that pain and set up a test of the 50-day MA near the $25 level.

 

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Advanced Micro Devices, Inc. (NASDAQ:AMD) bills itself as a semiconductor company worldwide. It operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom.

The company’s products include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles.

It provides x86 microprocessors for desktop PCs under the AMD Ryzen, AMD Ryzen Pro, Threadripper, AMD A-Series, AMD E-Series, AMD FX CPU, AMD Athlon CPU and APU, AMD Sempron APU and CPU, and AMD Pro A-Series APU brands; microprocessors for notebook and 2-in-1s under the AMD Ryzen processors with Radeon Vega GPUs, AMD A-Series, AMD E-Series, AMD C-Series, AMD Z-Series, AMD FX APU, AMD Phenom, AMD Athlon CPU and APU, AMD Turion, and AMD Sempron APU and CPU brands; and microprocessors for servers under the AMD EPYC and AMD Opteron brands. It also offers chipsets under the AMD brand; discrete GPUs for desktop and notebook PCs under the AMD Radeon and AMD Embedded Radeon brand; professional graphic products under the AMD Radeon Pro and AMD FirePro brands; and customer-specific solutions based on AMD’s CPU, GPU, and multi-media technologies.

In addition, it provides embedded processor solutions for interactive digital signage, casino gaming, and medical imaging under the AMD Opteron, AMD Athlon, AMD Sempron, AMD Geode, AMD R-Series, G-Series, and AMD Embedded Radeon brands; consumer graphics under the AMD Radeon brand; and semi-custom SoC products.

Advanced Micro Devices, Inc. (NASDAQ:AMD) pulled in sales of $1.7B in its last reported quarterly financials, representing top line growth of 0.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.1B against $1.9B, respectively).

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