AMD's stock price does not have a strong likelihood of significantly increasing tomorrow morning before hours (premarket). Here's why:
- Recent Performance: AMD's stock has been experiencing a decline of 9.43% over the past month, indicating a recent bearish trend.
- Earnings and Guidance: AMD's third-quarter earnings met expectations, but the revenue guidance for the current period was slightly below estimates. This has led to concerns among investors about the sustainability of AMD's high earnings and the potential for future growth.
- AI Chip Demand and Supply: AMD has been a significant beneficiary of the AI chip demand boom, but its soft quarterly revenue forecast and a $5 billion AI chip sales target for 2025 suggest that demand is outpacing production. This could lead to supply shortages and potential risks to growth.
- Market Sentiment: The sentiment among investors is cautious, as evidenced by the decline in AMD's stock price after the earnings report and the lowered target prices from some analysts.
- Technical Indicators: The stock's 5-day moving average is $156.89, its 10-day moving average is $156.16, and its 20-day moving average is $161.01. This suggests that the stock is trading below these short-term and medium-term averages, which could be seen as a bearish signal.
- Price Forecast: The forecast price for AMD in the next ten trading days is expected to be between $157.59 and $160.34, which is slightly above the current trading price. However, this forecast does not indicate a potential for a significant increase in price.
In conclusion, while there are some positive indicators for AMD's stock price, such as the forecast price above the current price and the potential for growth in the data center segment, the overall sentiment and guidance concerns suggest a cautious outlook. The stock is more likely to continue its recent trend of fluctuating around the $148 mark rather than experiencing a significant increase in the premarket session tomorrow morning.
10/30/2024 08:33pm
