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3 Reasons Investors Should Hold On to Advanced Micro Devices

The chipmaker has been on an amazing run, but will it drive earnings?

Three Reasons Investors Should Hold On to Advanced Micro Devices

1. There is better visibility into Ryzen 7 and the imminent Ryzen 5 launch on April 11. While the Ryzen 7 series competes with Intel's (INTC) - Get Report  workstation and professional applications, it has received mixed reviews.

2. A major factor behind AMD's share price outperformance is its peerless leadership strategy.

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3. Advanced Micro Devices' ability to balance pricing and competitive performance has been fairly impressive.

There are challenges, nonetheless. Near-term revenues and gross margin upsides could be impacted by increasing operating expenses and smaller licensing gains for 2017. Looking at the company's balance sheet, cash and liabilities are at manageable levels. If AMD manages to show profits, analysts will upgrade price targets, and the stock will move upward.