Quick Win by the Algorithm: Advanced Micro Devices Inc. (AMD)

Quick Win by the Algorithm

Advanced Micro Devices Inc. (AMD)

On March 18, 2016, the I Know First algorithm gave a bullish signal of 386.48 for the ticker AMD with a predictability indicator of 0.39. In accordance with the algorithm’s prediction, ADM experienced outstanding growth of 87.86% in just 3 months.

I Know First has been watching AMD closely recently since the stock saw an increase of more than 52% in just one day in April. On April 24th, a senior analyst argued that the stock was likely to see further gains. Then, on June 1st, another article was published looking deeper into the company and what investors and consumers could expect to see from them. Since the first article was published, AMD has grown 94% and since the second article, the stock has grown 43%.

Quick Win by the Algorithm

Advanced Micro Devices Inc. (AMD) operates as a semiconductor company worldwide. The company’s products include mainly x86 microprocessor as an accelerated processing unit (APU) and graphic process units (GPU). It also provides microprocessors for desktop PCs.

AMD’s stock price took a punishing fall in the beginning of the year because of sluggish PC sales. Additionally, it lost a lot of the CPU and GPU market to its competitors Nvidia and Intel. The stock was beaten to all time lows, but has been rallying ever since. The rally sprouted because of better than expected earnings, as well as the future launch of its new architecture, Polaris. They are also introducing Zen technology which they hope to launch as soon as 2017. Zen technology is a smaller processor, and can complete activities 40% quicker than the process they currently have.

To add more to this positive outlook, AMD has the biggest presence in the gaming console market. This includes major companies such as Microsoft, Sony, and Nintendo. Most notably, Microsoft and Sony use AMD for their console systems. Related to the gaming industry, AMD has the largest presence in the virtual reality market. Working with companies such as Facebook and Oculus Rift.

Looking at the company on a macro level, they have just launched a joint venture with Tianjin Haiguang Advanced Technology Investment Company (THATIC). THATIC is a Chinese investment company that will get products from AMD and sell it to public and private companies in China. Although Intel dominates most of the Chinese market, they did not oppose this third party idea.