Why the AMD Weekly
Options Trade was Executed?…..
Advanced Micro Devices, Inc. (NASDAQ AMD) is a business that supplies the technology
upon which AI is built and will likely provide the most profit moving forward.
The chipmaker intends to supply the vital processors that power the
massive cloud computers that make AI possible.
Micro Devices has the potential to profit from the development of multiple
industries. The company's chip business has granted it solid positions in a
variety of markets, with its hardware powering cloud platforms, AI models, game
consoles, PCs, and more. As the tech industry expands, more and more companies
will be turning to chipmakers like AMD to take their devices to the next level,
bolstering the semiconductor company's stock over the long term.
may have taken a deep dive last year, but those who took advantage of the bear
market have benefited from its 72% rise since Jan. 1. Wall Street has grown
particularly bullish about AMD this year, thanks to its potential in AI. The
company's chips can run and develop AI software, with the market expected to
expand at a compound annual growth rate of 37% through 2030.
AMD's financials are on a solid growth track. Over the last five years, annual
revenue has risen 265%, while operating income has increased 180%. Alongside a
swiftly expanding business, AMD is an excellent option at almost any time but
especially during a bear market.
The AMD Weekly
Options Trade Explained.....
** OPTION TRADE: Buy AMD JUL
14 2023 112.000 CALLS - price at last close was $3.70 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the AMD Weekly Options (CALL) Trade on Monday, June 26, 2023, at 9:45, for $3.85.
Sold the AMD Weekly Options contract on Monday, June 26, 2023, at 9:56, for $4.60; a
potential profit of 19%.
Re-bought the AMD Weekly Options (CALL) Trade on Monday, June 26, 2023, at 3:57, for $2.50.
Don’t miss out on further trades – become a
Advanced Micro Devices .....
Micro Devices, Inc., also known as AMD, is a semiconductor company operating in
the global market. The company was incorporated in 1969 and is one of the
oldest semiconductor manufacturers on the market today. Headquartered in Santa
Clara, California, Advanced Micro Devices is fundamental to most verticals
within the global economy.
Micro Devices operates in two segments; Computing And Graphics and Enterprise,
Embedded, and Semi-Custom. Advanced Micro Devices products span a range of
semiconductor applications including microprocessors, chipsets, GPUs, data
centers, system-on-a-chip, development services, and technology for gaming
consoles which gives it some of the broadest exposure of any semiconductor
Micro Devices markets its high-performance products under a host of brands that
include AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO,
AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, AMD PRO A-Series, AMD Radeon
graphics, and AMD Embedded Radeon graphics brands and there are pro-models
available in all categories.
serves OEMs across all verticals, cloud service providers, independent
distributors, online retailers, and add-in-board manufacturers through a
network of direct sales, independent distributors, and sales representatives
that have offices in all major markets.
Micro Devices is run by a team of industry-leading innovators who believe in
the concepts of high-performance and adaptive computing. Adaptive Computing is
a technology that can learn and alter its functioning and adapt to meet the
needs of its users. The push toward adaptive computing is being led by Dr. Lisa
Su who joined the team in 2012 as a Senior Vice President and is now Chairman
of the Board and CEO. Before joining Advance Micro Devices Dr. Su spent 18
years working in various positions at two other very high-profile semiconductor
companies that are still in operation today.
that makes AMD stand out from the crowd is its twin focus on high-performance
computing and high-performance graphics. This focus gives AMD an edge over the
competition because it is the best at combining the two aspects into custom
solutions that are driving innovations and advancements in other industries and
fields of research. The latest innovation, and one hailed as the biggest
advance in CPU cache technology in over a decade, is the creation of the AMD
EPYC processors which include AMDs 3-D V-Cache technology. The V-Cache
technology alters the way data is stored in the cache and is resulting in up to
66% improvement in performance.
performance, leadership, and innovation aren’t enough to sway an investor
Advanced Micro Devices is also a leader in the push toward sustainable and
green operations. The company is on track to meet the four pillars of its plan
which are 1) a 50% reduction in greenhouse gas emissions by 2030 2) reach a 30X
increase in efficiency for many of its processors 3) 100% of suppliers must
have public GHG goals and 4) 80% of suppliers sourcing renewable energy by
Further Catalysts for the AMD Weekly Options Trade…..
CEO Lisa Su
believes artificial intelligence is AMD's "largest and most strategic
long-term growth opportunity." Su is working to integrate the cutting-edge
technology across the company's product lines. And she has her sights set on
wrestling away market share from Nvidia.
unveiled the MI300X, a high-performance graphics processing unit (GPU) designed
to accelerate AI workloads. Providers of the most advanced AI applications,
such as ChatGPT-creator OpenAI, rely on GPUs to train and run their AI models.
"GPUs are enabling generative AI," Su said at an investor event
earlier this month.
AMD is also
developing software that combines with its chips to further optimize AI
workloads. Nvidia's software expertise is a key part of its competitive edge.
If AMD's new software can compare favorably -- and early indications suggest
that it will -- the chipmaker could quickly become a formidable challenger to
Nvidia in the AI arena.
AMD has yet
to announce a major customer win among the leading cloud platforms, but it
could be only a matter of time before it does. Amazon is reportedly testing
AMD's new chips for its cloud division. Amazon Web Services (AWS) is the
largest of all the cloud-computing networks, so a deal with the cloud titan
could be a game changer for AMD.
To win more
business, AMD is taking a different approach than Nvidia. AMD is offering
potential cloud customers a smorgasbord of sorts from which they can choose
among an assortment of AMD's AI hardware and software offerings to pair with
their own custom-designed chips and parts provided by other suppliers.
strategy could resonate well with Amazon and other cloud-service providers that
like to design their own servers. "We're betting that a lot of people are
going to want choice, and they're going to want the ability to customize what
they need in their data center," Su said during an interview with Reuters.
A deal with
Amazon could allow AMD to quickly capture a sizable chunk of a data center AI
accelerator market that's forecasted to increase fivefold to more than $150
billion by 2027, according to Su.
More Than AI.....
course, is far more than just an AI story. Its chips power the leading
video-game consoles, including Sony's PlayStation 5 and Microsoft's Xbox Series
X|S. AMD thus stands to benefit as the global games market expands to over $200
billion in annual sales by 2025, as estimated by Newzoo.
still, AMD's nearly $50 billion acquisition of Xilinx in February 2022 made it
a leader in the fast-growing adaptive computing market. The deal helped AMD's
embedded segment produce $1.6 billion of revenue and $798 million of operating
income in the first quarter alone, both of which were up nearly threefold from
the prior-year period.
Raymond James upped their target price on Advanced Micro
Devices from $110.00 to $145.00 in a research report on Wednesday, June 14th.
According to the issued ratings of 30 analysts in the last
year, the consensus rating for Advanced Micro Devices stock is Moderate Buy
based on the current 9 hold ratings, 20 buy ratings and 1 strong buy rating for
AMD. The average twelve-month price prediction for Advanced Micro Devices is
$125.06 with a high price target of $170.00 and a low price target of $80.00.
Advanced Micro Devices stock has a
market cap of $177.16 billion, a price-to-earnings ratio of 478.30, and a PEG
ratio of 8.32 and a beta of 1.92. The stock has a 50-day moving average of
$105.97 and a 200-day moving average of $88.76. The company has a current ratio
of 2.38, a quick ratio of 1.74 and a debt-to-equity ratio of 0.05. Advanced
Micro Devices, Inc. has a 1-year low of $54.57 and a 1-year high of $132.83.