Shares of Advanced Micro Devices (AMD) are up around 5% so far Wednesday morning after the chipmaker reported second-quarter results that narrowly outperformed the analyst expectations. The company’s upbeat outlook for the current quarter played a part as well.

Adjusted earnings per share came in at $0.69/share, just ahead of the $0.68/share estimate on Wall Street. The revenue figure of $5.84 billion was comfortably ahead of the $5.72 billion analysts were expecting as well.

Dr. Lisa Su, Chair and CEO at AMD, attributed the Q2 success to Data Center and Client segments showcasing impressive growth in a crowded semiconductor market.

Su also pointed out the impressive AI business acceleration AMD is seeing. This comes as the company initially crowned leader of the AI arms race, Microsoft, continues to show lackluster AI performance in its own earnings results earlier today.

Su said that the torrent pace generative AI is on as a technology is continuing to create more opportunities for AMD to deliver solutions. Mizuho analysts spoke to this and said that while the performance thus far has been promising, it’s only poised to get better. They see AMD still in the early stages of its AI GPU ramp with tons of room to grow.

The chipmaker’s outlook for the third quarter of 2024 is fairly optimistic as well. Its current revenue guidance sits at $6.7 billion, plus or minus $300 million. Experts are forecasting $6.61 billion.

The most exciting products right now are AMD’s Instinct, EPYC, and Ryzen processors – but the company also lifted its full-year MI300 outlook to $4.5 billion, up $500 million from the previous guidance.

AMD has struggled on the stock market over the past few months, down nearly 7% in the past 30 days alone. Today’s performance will help turn things around for the stock – but is now a good time to buy AMD? 

We’ve reviewed this opportunity through the VectorVest stocks software and have 3 things to show you that will help you make your next move with confidence and clarity.

AMD Has Excellent Upside Potential and Safety Despite Poor Timing

VectorVest is a proprietary stock rating system that simplifies your trading strategy, empowering you to elevate your returns while reducing work and stress associated with stock analysis. 

You’re given everything you need to know to make calculated, emotionless decisions in 3 ratings: relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy.

The system even gives you a clear buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. Here’s what you need to know regarding AMD:

  • Excellent Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This makes it a far superior indicator than the typical comparison of price to value alone. AMD has an excellent RV rating of 1.50.
  • Excellent Safety: The RS rating is a risk indicator. It’s computed from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 1.45 is excellent for AMD.
  • Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. AMD has a poor RT rating of 0.75, reflecting its recent performance.

The overall VST rating of 1.25 is very good for AMD, but not enough to earn the stock a buy yet. The stock is rated a HOLD in the VectorVest system. If today’s price trend sticks, though, that recommendation could change rapidly. 

So, stay up to date on this opportunity - better yet, take a closer look at AMD through a free stock analysis at VectorVest today so you can capitalize when the timing is right!

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VectorVest advocates buying safe, undervalued stocks, rising in price. AMD reported Q2 earnings today that surpassed analyst expectations on both the top and bottom lines. The company is positioned well to continue benefiting from AI expansion, with an upbeat outlook for the quarter ahead reflecting that sentiment. The stock itself has excellent upside potential and safety, but poor timing is holding it back right now.

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