Julie Lamb

About the Author Julie Lamb

Julie graduated with a Bachelor of Arts in English with a focus on creative writing from the University of Louisville.

Time to Fly the Coop on Advanced Micro Devices, Inc. (AMD)?


Is it Ryzen launch swagger or bust for Advanced Micro Devices, Inc. (NASDAQ:AMD)? The shares have lately been in a bit of a post Ryzen 7-rut. Whether it’s a rainy day for investors to stay home or these clouds turn into a true tropical storm, a stock is measured by its prospective path ahead- and for AMD it boils down to Ryzen and Vega.

True- there had been a good period for AMD investors before the Ryzen aftermath of inflated hype. These days, all eyes are on whether that former momentum can carry on down the line. Can the next-gen line out-maneuver its rivals in a cut-throat chip-maker-eat-chip-maker world?

AMD CEO Lisa Su anticipates these two products will be the key to leading high end markets, which she acknowledges has been elusive in the company’s execution- until now. The question that arises might not be whether share gains are possible- but whether they will be enough to steal the edge from a leader like Nvidia. Even should the chip giant poach a fifth of the market, there is still a long road to go that has been less traveled by the likes of AMD thus far.

Competition is steep. In a battle ring with Nvidia and Intel coming out with fists punching to capture the king spot on the chip maker leaderboard, you better believe these giants are ready to duke it out. Price deals will be imminent in the next two years as moves on the defense, even should AMD escalate its revenue. NVDA is not one to take a high processor serve from AMD sitting down, knowing that consumers could be whisked away by the same high performance at a fraction of the price tag.

Yet, while AMD enthusiasts will argue in favor of the stock through the heat of the fray, there are reviewers who rose more than just an eyebrow or two at Ryzen’s gaming capabilities. The proof is in the pudding: in the six-week period following the launch, shares have certainly abated. Whether the apprehension is valid or whether Ryzen’s gaming can improve in the next round of the chip maker clash for dominance over the market is worth waiting to see.

How does the stock price come up when taking under account the 50-day moving average? Should you stay the course or ditch the semi-conductor? Is the valuation worth it at the end of the day? A glimpse into the past month reveals the chip maker stumbled in trading prices juxtaposed against the rest of the viable players. AMD’s last best trading price hit at the end of February, and since then has fallen not once, but two times underneath the metric- a metric many investors use to gauge whether it’s high time to peddle a stock. In a volatile economic atmosphere considering the “Trump” card placed down in it all, the semiconductor equipment industry has taken a dip in the past few months. At the end of the day, when choosing where to invest the big bucks, NVIDIA might just be the wiser bet of the two.

 

Disclaimer: The author has no positions in the stock mentioned. This article is intended for informational and entertainment use only, and should not be construed as professional investment advice.

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