This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What To Do With AMD Following Massive Rally

Chris Lau, KAPITALL: Over the past month, shares of Advanced Micro Devices (AMD) are up 54.5% on convincingly above-average volume. Trading volume was approximately five-fold higher than the daily average. With no news big releases recently, investors are left speculating on why shares advanced so rapidly and so quickly.  [Chris Lau called it:  2 Tech Stocks Under $3 to Watch After Markets Free Fall ]  

Reasons for Rally

Some of the possible reasons for the rally include:

1.     Short-covering. Short float is around 14.3%, according to finviz.

2.     Bullishness was delayed following AMD’s design win as a chip supplier for next-generation Sony (SNE) console

Analysts weighed in on the rally. Wells Fargo cited stable product pricing for AMD’s processor and the launch of two high-end processors. The bank has an outperform rating on the company.

$1,000 Video Card

In the graphics segment, AMD has a Radeon HD 7990 that costs around $1,000. A recent review on the product notes that the card, in cross fire mode, performed better than its rival’s card, the NVIDIA (NVDA) GTX 690. The good performance comes with a cost: power consumption is 100 watts higher than the GTX 690.

The card comes with popular games like Bioshock Infinite, made by Take-Two (TTWO). IT also includes games made by Electronic Arts (EA), including Crysis 3 and Battlefield 3. In the last three months, shares are up:

After considering product price against 8 games bundled with the card, reviewers could not recommend the card.


Even after the recent rally, AMD shares are underperforming its competitors. AMD is down 52% in the last year. Intel is down 14% over the one year period, too, but NVIDIA is up 6%:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs