Keep an eye on Advanced Micro Devices (SYM: AMD).
Oversold at $145, it’s just starting to pivot higher after finding strong support at $140. It’s also starting to pivot from overextensions on RSI, MACD and Williams’ %R. From $145, we’d like to see AMD initially refill its bearish gap at around $162.50.
Helping, analysts at Evercore ISI just raised their price target on AMD to $198 with an outperform rating. While AMD did forecast a 10% EPS outlook miss, the firm is still bullish on AMD because it continues to gain traction as the No. 2 supplier of accelerator solutions.
We also have to consider that the artificial intelligence and data center demands aren’t likely to slow any time soon. All of which is great news for stocks like AMD. Even better, “While Intel’s Xeon CPUs still power the majority of servers, the most expensive machines now use AMD’s EPYC processors. This is why AMD’s datacenter business unit now outsells Intel’s datacenter and AI business group,” as noted by TomsHardware.com.
