AMD, the semiconductor leader, and monstrous Tech Company has taken a very big hit on its stock in the past 12 months. AMD Has issued guidance worries on demand woes and earlier, supply woes. No matter these shorter-term issues that are going on within AMD, and in the Macro-Outlook of the Economy, AMD is attracting and will be attracting many buyers at these much more fair-valued prices.
As AMD has continued to fall it has hit a significant Trendline that has acted as strong support for the past year's downtrend. Along with this trendline tap, AMD continues to enter a major demand zone from pre-covid levels. The High 40s to $60 will remain a very demand-heavy spot for AMD as many buyers step in. Long Term buyers and bounce Buyers are anticipating for a bounce off these trendlines, and possibly a bottom near this solid demand zone. AMD's p/e ratio has fallen dramatically to around 20, resigning a fair price to the company's stock rather than the high 100s.
Many Buyers will be seeing value at this price. My thesis is that this can be a smart Long-Term Entry for scale-ins on the company's stock. Buying at these demand levels will carry lower risk/reward with AMD reaching fair value, and a huge demand zone. I personally believe years out, this is a perfect acquiring zone to start!
Interesting but it needs to find a bottom not there yet.
ZachSap
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@dudeBurkitt, I definitely agree with that it has not found its bottom yet. Point being for long term investors.. in this case me, price is getting attractive so scaling in could be ideal to not miss the bottom! But I definitely agree, bottom not there yet
dudeBurkitt
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@ZachSap, long term could start to scale in here. In my long term I don’t own many individual names I just buy the mkt via VOO. Also own AAPL at a avg price if $ 28 been buying below the 200 sma on the daily since 2010. You have time on your side just by the mkt via a low cost etf and buy 1 or 2 of your favorite blue chips. When I was your age I was buying HD hand over fist and it gave me the down payment on my first house. Find a company u love and dollar cost avg into over time as your interest change shift your buys into that new blue chip company. That’s what has worked for me. As for day trading I’ll trade anything if the setup is right. LOL it’s very difficult to day trade don’t let anyone tell u different it takes years to figure it out and even then if u have a 60% win rate you are an elite trader.