AMD Stock Forecast: 27.23% Gain In 14 Days

AMD_logoAdvanced Micro Devices, Inc. (AMD) was a Aggressive Stock pick based on predictive algorithm recommended to I Know First subscribers on January 21th for the 14-days time horizon. AMD had a signal of 42.84 and a predictability of 0.3. In accordance with the algorithm, the company reported short-term capital gains of 27.23%.

AMD was part of the stock forecast that can be found in the “Risk-Conscious” Package.

The full Risk-Conscious Package includes a daily forecast for a total of 40 stocks with four main categories:

  • top ten aggressive stocks picks that best fit for long position
  • top ten aggressive stocks picks that best fit for short position
  • top ten conservative stocks picks that best fit for long position
  • top ten conservative stocks picks that best fit for short position

AMD Stock Forecast

Advanced Micro Devices, Inc. (AMD) is an American worldwide semiconductor company based in California, United States, that develops computer processors and related technologies for business and consumer markets. AMD is the second-largest global supplier of microprocessors based on the x86 architecture and also one of the largest suppliers of graphics processing units.

Advanced Micro Devices, Inc. (AMD)  shares are up these last couple of days for a couple of reasons. One of the reason for the stock climbing is takeover speculation that has created a feeding frenzy for AMD stock. Indeed, the Chinese company BLX IC Design is reportedly in acquisition mode for the once great semiconductor company, despite its lagging recent sales.  Both companies have worked together previously, back in 2003.

On the other hand, shares of AMD have been moving up lately as investors weighted on the firm statement to make real improvement in its transition from semiconductor designer for customers’ personal computers to provider of chips operating everything from advanced avionics to the newest Microsoft Xbox. Under Lisa Su CEO of Advanced Micro Devices, an engineer who was promoted to the upper position in October 2014, AMD has gained $1 billion of new business from customers who will support diversify its sales base. Since she moved into AMD in the start of 2012, it has renegotiated the terms on its huge debt, and this year, it will trim operating costs by $85 million via a 7% workforce decrease. The aim is to reduce AMD’s reliance on household PCs, whose sales seem to be locked in a drop as consumer’s option for smartphones and tablets.

An interesting point regarding this company is that even tough its price has been going up these last couple of weeks, I Know First algorithm did not only predict this movement, but it also predicted its previous drop, as can be seen in our previous article Algorithmic Breakdown Of AMD Points To A Bearish Short-Term Outlook, posted on Seeking Alpha. Actually, if the investor followed our recommended strategy to choose when to buy and when to sell, he would have being short during the days the price of the AMD was dropping and he would have bought long when the stock bottomed on January 20th, giving him a healthy return.