Price $155.87
Year Range $116.82 - $211.38
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Volume 42,600,000
Market Cap $245B
PE Ratio 216.54
Dividend Yield 0%
Industry Semiconductor

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AMD - AI Stock Analysis

Analysis generated July 22, 2024

Advanced Micro Devices (AMD) is a semiconductor company that designs and produces microprocessors, graphics processing units (GPUs), and other technological components. The company competes heavily with other major industry players such as Intel and NVIDIA. AMD has sought to position itself as a leader in high-performance computing and visualization technologies.

Fundamental Analysis

Revenue for the last quarter stood at $5.47B, which represents a decrease of 15.17% compared to the previous quarter. Although the decrease signals potential red flags, there is a year-over-year increase of 2.24%, indicating positive growth when compared to the same quarter last year.

Net Income was $123M for the last quarter, showcasing an 81.56% decrease from the previous quarter. This kind of drop is alarming; however, it demonstrates a significant turnaround from the same quarter last year, where net income increased by a whopping 188.49% year-over-year.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the last quarter was $1.5B. Although this is a decline of 8.97% from the previous quarter, it is more concerning when compared to the same quarter last year—representing a reduction of 40.80%. This suggests that the company may be facing operational inefficiencies or increased costs.

AMD's current Price-to-Earnings (P/E) ratio stands at 216.54. This is notably high and could suggest that the stock is overvalued, projecting a bearish outlook. Furthermore, recent insider selling activity could be another bearish signal, potentially indicating that company executives are not confident in future stock performance.

Technical Analysis

Today's stock price of AMD is $155.88. This represents a 3.32% decline over the past month, potentially signaling short-term concerns. Nevertheless, the long-term trend is more favorable, with a year-over-year increase of 40.50%.

However, the prevalent trend is bearish. The current SMA10 (Simple Moving Average over 10 days) stands at 164.64, which is lower than the previous SMA10 of 167.21. This points to a potential downward trend in price movement. An RSI (Relative Strength Index) of 58.7 indicates a neutral market condition and suggests neither overbought nor oversold conditions.

Alternative Data Analysis

The alternative data for AMD also present mixed signals. The company's job postings are down by 9% in the last couple of months, standing at 1,050 open positions. This could indicate cost-cutting measures aiming to improve margins, which is not necessarily positive for a growing company.

Customer acquisition seems to be heading downward, with the number of visitors to AMD's webpage estimated at 14M—down by 23% over the past couple of months. This suggests a potential loss in customer interest or engagement. Mobile app downloads are stagnant with no meaningful changes reported.

As for customer engagement metrics, AMD holds 1.9M followers on Instagram and 1.2M followers on Twitter, but there has been no significant change in these numbers, indicating stagnation in social media growth. Furthermore, the AltIndex AI score for AMD stands at 42, which is a hold signal, based on comprehensive fundamental, technical, and alternative data points.

Conclusion and Recommendation

Based on the comprehensive analysis, AMD's stock presents a mixed picture. On the fundamental front, the significant drop in net income and EBITDA, alongside a high P/E ratio, raises red flags. Technical analysis further supports a bearish trend with declining SMA10 values and a slightly neutral RSI.

The alternative data also show no striking positive trends, with job postings and webpage visits both on the decline, indicating potential issues in customer engagement and company growth.

Therefore, the recommendation is to hold AMD stock for now. The combination of fundamental, technical, and alternative data suggests a cautious approach. Investors may want to keep an eye on upcoming quarterly reports and market trends before making any aggressive moves.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.

The analytics provided are estimates and not a substitute for professional advice. All investments involve risks, including possible capital loss.
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