Quick Win by the Algorithm: AMD Almost 360% Return

Quick Win by the Algorithm

Advanced Micro Devices (AMD)

On July 22nd, 2015, the I Know First algorithm gave a bullish signal of 88.82 for the ticker AMD with a predictability indicator of 0.54. As the algorithm correctly predicted, AMD experienced a superb return of 359.28% in a one year time horizon.

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.

On July 22, 2015, an analyst at I Know First had written a bullish article regarding Advanced Micro Devices Inc. (AMD); and how their divestment and inroad building towards GPU systems would create a large synergy for their share price. Since then, the stock price has soared an unbelievable amount as the algorithm had predicted, and throughout the year many more analysts had written more bullish articles for our investors, regarding why they should continue their investment in AMD. Our analyst created a SWOT analysis of AMD and predicted its price increase (along with the algorithm) in February. He continued to track AMD and also predicted further stock increases in April and early July. All of these forecasts were accurate as AMD continuously increased throughout 2016.

quick win

As the article from last year had correctly mentioned, the investment particularly towards GPU technology has paid off tremendously for AMD, particularly their “RX480” GPU, which allowed for a low-end disruption, to compete with the sector leader Nvidia. They are scheduled to launch more in the types later on, however, as of now they have had a positive impact on their earnings for Q2 2016. They had reported positive earnings of $0.08 EPS, as opposed to negative earnings at the same time in 2015, of -$0.23 EPS. This has greatly increased positive sentiment for investors, as AMD has begun earnings a positive income once more. During Q3, AMD even expects their sales to grow by around 18%, showing an even higher possible stock increase towards the future.

Additional reasoning is the soon to be release Zen product, that has grabbed headlines for a while now, which is said to allow AMD to be able to compete with giants such as Intel for the CPU sector. The Zen would be a lot faster than Intel’s x-86 CPU as well. Another soon to release product, is Vega GPU, which would allow AMD to capture the premium arena of the GPU market, thus solidifying their position as both premium and discount GPU producers, further adding onto their sales increase from Q2 2016. The largest stock increase, for AMD, was as a result of their licensing agreement with China, allowing them to sell many more products now and for the upcoming several years.

Analysts at I Know First, have written for some time now about many advantages that have ranged as a result of new strategic endeavours taken by AMD, which have all resulted in high stock increases, as the algorithm had predicted.

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This forecast for AMD was sent to current I Know First subscribers on July 21nd, 2015.