Quick Win by the Algorithm: AMD Steps Up Their Game

Quick Win by the Algorithm

On March 6, 2016, the I Know First algorithm had predicted a bullish forecast for Advanced Micro Devices Inc. (AMD). AMD had a signal of 56.80 and a predictability of 4.71. In accordance with the algorithm, the company reported gains of 450.21% experiencing a quick win by the algorithm.

quick win

Advanced Micro Devices Inc. (AMD) is an American multinational semiconductor company, that develops computer processors and related technologies. The company’s main products include microprocessors, motherboard chipsets, embedded processors and graphics processors. AMD is the only substantial competitor to Intel in for the market for x86 based microprocessors.

quick win

Historically struggling to compete with industry leaders Intel (INTC) and Nvidia (NVDA) in the central processing unit (CPU) market. Advanced Micro Devices (AMD), has been the top performing semiconductor stock. AMD stock saw a huge increase of 295% in 2016 and is already up more than 20% since January 2017. All this growth is stemming from the optimism surrounding their future growth as a company.

AMD prepared themselves to compete with Intel in the high-end CPU market with the release of Ryzen, a desktop processor, released on March 2nd, 2017. Through the launch of Ryzen, AMD hopes to tap into the declining PC market and gain some valuable marketshare where Intel currently owns over 80%. AMD really possess an advantage over their rivals, in the Application processing Unit (APU) market where they have the monopoly.

AMD successfully reduced their debt by $500 million from fiscal 2015 to fiscal 2016.  As well as raising $1.4 billion in cash through the issuing of $805 million in 2.1% convertible notes due in 2026. Consequently, ADM reduced their interest expense from 7.5% to 2.1%.

This bullish forecast on AMD was sent to current I Know First subscribers on March 6, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.