of Advanced Micro Devices, Inc. (NASDAQ AMD)’s gains came
on Thursday in response to NVIDIA's earnings report. The leading GPU (graphics
processing unit) maker beat estimates on the top and bottom lines in the first
quarter and gave much better guidance than Wall Street had expected in the
second quarter, saying that it was ramping up production to match demand for AI
interpreted this as good news for AMD as it also makes GPUs and other products
for AI workloads, though NVIDIA's are generally considered more powerful.
flat revenue growth in its data-center segment, which would reflect demand for
AI chips, and its guidance called for flat sequential growth, indicating it
isn't yet seeing the AI boom that NVIDIA is.
AMD launched a new lineup of Ryzen and Athlon 7020 C-Series processors, which
will go in Google Chromebooks. It also introduced a new Radeon RX 7600 graphics
card designed to deliver 1080p gaming experiences.
of America also raised its price target on the stock from $105 to $120
due to new products expected to roll out at a June 13 event and increasing
Why the Original Advanced Micro Devices Shares Weekly Options Trade was Executed?
shares in Advanced Micro
Devices, Inc. (NASDAQ AMD) and Micron
Technology, Inc. (NASDAQ: MU) provided the biggest boosts to the chip sector, which outperformed the
broader market as investors looked for ways to invest in artificial
intelligence and in Japan.
intelligence (AI) is more advanced than ever and could have a tremendous impact
on the world over the next decade. AI requires enormous computing power because
of how much data it must process quickly.
Micro Devices should have many opportunities as a leading semiconductor
company. Semiconductors are essentially the building blocks of computing
systems and will play an important role in building out AI.
demand for AI chips could fuel exciting growth for AMD.
believe that AI could add $13 trillion in economic output to the global economy
by 2030. That could translate to big growth in semiconductor stocks, and
analysts see years of strong growth ahead for AMD. The average estimate has
revenue nearly doubling by 2027 and earnings-per-share (EPS) almost tripling.
programmable-chip specialist Xilinx over a year ago for $49 billion, a company
known for its advanced designs. Xilinx should give AMD options in designing
products specialized for AI applications. It has an investor event planned for
next month to unveil several new products aimed at the data center and AI
Weekly Options Trade Explained.....
** OPTION TRADE: Buy AMD JUN
02 2023 110.000 CALLS - price at last close was $2.65 - 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 Friday, May 19, 2023, at 9:35, for $1.89.
Sold the AMD weekly options contracts on Friday, May 26,
2023, for $17.55; a potential profit of 829%.
Total Dollar Profit is $1,755 - $189 (cost of
contract) = $1,566
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Of Advances In AI For AMD.....
The roller coaster
continued on Wall Street this week as the broader market remained focused on
the ongoing drama in Washington, DC, and continued to pin its hopes on an
agreement to raise the debt ceiling amid partisan gridlock.
The current state of
artificial intelligence (AI) and recent advancements in generative AI has been attracting quite a bit of attention in
recent weeks and months. Many investors have wondered how much of the current
zeitgeist is fad and how much is based in reality.
results and a stunning forecast from a company that is benefiting from the
current trend of AI, helped lift other stocks in the sector -- at least
head-to-head with Nvidia in some of the same markets, so its move higher is the
most direct correlation. Because AMD makes semiconductors for data centers,
cloud computing, and AI, it has a long runway ahead.
The company has steadily gained market
share on Intel in the PC market, but NVIDIA could prove to be a tougher
competitor. Still, it should get at least some benefit from the AI boom.
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