Advanced Micro Devices (NASDAQ: AMD) reported its Q2 earnings on July 30, showcasing a strong performance during the previous quarter that surpassed analysts’s expectations and potentially motivated Cathie Wood, CEO of Ark Invest (ARKK), to invest a substantial amount in this semiconductor stock.
Namely, on July 31, Ark Invest reported a purchase of 328,527 AMD shares worth approximately $47.5 million, according to the latest closing price on July 31, thus increasing Ark Invest’s overall holding of AMD shares by 158% to a total of 536,374 shares.
This trading activity worried investors, as recently a report from Morningstar called Wood’s fund a “wealth destroyer” because it has lost over $14 billion over the past decade.
Picks for you
AMD stock price analysis
As of the latest close, AMD stock is valued at $144.48 after adding 4.36% in the latest trading session, building up on gains of 0.23% from the previous five trading days.
Notably, AMD shares have been among the weaker performers in the semiconductor sector, adding just 4.26% year-to-date (YTD).
Technical analysis of AMD stock
AMD shares’ most recent technical analysis signals a bearish sentiment from the technical indicators.
This sentiment is supported by AMD shares’ current price range, which, despite a positive 4.36% gain in the latest trading session, still trade below their 20, 50, and 200-day simple moving averages (SMA).
Further examination reveals that despite trading above its support zone at $144.41, the chipmaker’s stock is currently far from its identified resistance level at $174.55, established less than a month ago.
A relative strength index reading (RSI) of 38, preceded by a falling trend, further supports the argument of weakness in AMD stock as it threads close to oversold territory.
Wall Street analysts disagree with the technical analysis of AMD stock
Analysts at Wall Street tend to give little importance to technical analysis, as they are more concerned with the company’s fundamentals and its long-term outlook, sections where, according to them, AMD posts a solid performance, as they assign a “strong buy” rating based on 31 opinions. Of these, 25 recommended a “buy,” 6 to “hold,” and none advised a “sell.”
The average price target is set at $191.37, reflecting a potential 32.45% upside from the current price levels.
On July 31, following an earnings release, analysts from more than 15 Wall Street financial institutions shared their opinions on the chipmaker’s stock, where most of the experts reiterated their previous stances.
These can be best summarized by a report from Piper Sandler analyst Harsh Kumar, who has maintained an “overweight” rating on Advanced Micro Devices stock but has reduced the price target from $195 to $175 amid concerns over the potential growth outlook and market share for this chipmaker producer.
Interestingly, most of the analysts reduced their price targets for this semiconductor stock while maintaining their previous ratings, indicating their concerns about the potential for growth in the future.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
