Weakness in Advanced Micro Devices (AMD) may be an opportunity.
After dropping from about $120 to $80, the stock is starting to bounce from oversold RSI, MACD, and Williams’ %R. From a current price of $86.27, we’d like to see AMD again challenge $110 a share, near-term.
Helping, JP Morgan analyst Harlan Sur just said the company’s product road map and its CIO survey “suggest the company can achieve 30% to 40% market share in the server processor market over the next few year – up from 20% this year,” as noted by Barron’s.
Morgan Stanley also resumed coverage of the stock with an overweight rating, with a $103 price target. The firm notes “AMD remains in a share gain position over the next couple of years at least, with the company likely to continue to take share in cloud servers as supply constraints ease,” as reported by TheFly.com.
As investors wake up to the oversold opportunity with AMD, it could test $110 again soon.
