Flashback 2019: Zenolytics Goes Bullish On AMD

With a soaring performance on Friday, after Intel completely fumbled in their chip delay, AMD has fulfilled the promise (and then some) outlined here a little over a year ago.

With our focus now being on all of the investment opportunities presented as a result of The Great Acceleration Cycle, we moved on from AMD sometime ago. However, it's worth noting how far the stock has come in a year's time.

What follows is from May 17th, 2019 in a note titled Zenolytics Goes Bullish On AMD. Check that box:

The SOX has experienced a ruinous decline during May, falling 11% from its April high, while key components within the average such as XLNX and NVDA have been treated like scraps of red meat for the eagerly awaiting, starving population of bears.

In what has been a form of subtle bullish signalling, AMD has refused to to participate in this foray of self-loathing behavior among the semiconductor names, instead choosing to pin itself to recent highs, directly beneath a key trajectory point, while there are very obvious signs of accumulation taking place. In the category of technical imagery, this is the equity equivalent of increasing the throttle on the jets before takeoff.

In the midst of this bullish technical dance are a symphony of bubbling positive fundamental developments:

  • Data center revenue has doubled year over year
  • Gross margin expansion
  • Market share expansion versus competitors, specifically: INTC and NVDA
  • A growing list of competitive product offerings targeting high growth markets, including gaming and datacenter markets
  • Potential immediate upside catalyst 2019 Computex Conference May 28-June 1, with the CEO of AMD giving the keynote address

Zenolytics is bullish on AMD seeing a test of the 2018 highs at $34 as being imminent, with the possibility of further gains entirely dependent on whether the market gains traction away from the current bearish regime.


 

Zenolytics now offers Turning Points Market Intelligence premium service  Click here for details.

 

Disclaimer
This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice.
This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website.
T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing.
Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in, the transmission thereof to the user. With respect to information regarding financial performance, nothing on this website should be interpreted as a statement or implication that past results are an indication of future performance.

 

 

Author: admin

Share This Post On