Technology is evolving and people are wondering what they may witness in the near future. With increasing consumer demand for latest tech like supercomputers, devices to support high end games, and more, tech companies may see upcoming opportunities to level up their game. Advanced Micro Devices Inc. (NASDAQ: AMC) should consider this and need to improve the products to outperform their rivals. AMC stock was trading at a market value of $64.77 at the publication time.
Company Slashes Semiconductor Demand
Recently, AMD was among the companies which reportedly cut off their semiconductor orders with Taiwan Semiconductors (NYSE: TSM). Company’s net income had declined from $786 Million in Q1 2022 to $66 Million in Q3 2022. Moreover, profit margin was lowered from 13.35% to 1.19% during the same timeframe.
Earnings Per Share (EPS) from $1.13 in first quarter 2022 to $0.67 during the recent quarter earnings. The company witnessed a reduced revenue stream during Q3 with $5.57 Billion, less than the estimated revenue with a surprise of $85.88 Million. The debt to asset ratio has increased by 2.26% in the recent quarter earnings in contrast to Q1 2022.
AMD Stock Price Analysis
Price chart shows a downtrend in company shares throughout 2022 while losing almost 90% of the value since January 2022. AMD is not the only one witnessing such a pattern as the majority of the companies were affected by dampening economic scenarios. The Russia Ukraine war was and still is a major factor influencing the market.
Regression channel supports buyer’s entry in the scene backed by the recent trading volume visible on the chart. Anchored VWAP shows a resistance around $81, a far cry from the latest stock price. Relative strength index also indicates increasing buyers’ interest.
With mammoths like Intel (NASDAQ: INTC), Nvidia (NASDAQ: NVDA) and more shedding their dominance in the market, AMD needs to step up their game in 2023. The company recently met with negative reviews regarding AMD Radeon RX 7900 as the GPU was going through some heating issues.
The Semiconductor market is an important counterpart for the company. According to Richard Gordon, Practice VP at a technological research firm Gartner, believes that “Rapid deterioration in the global economy and weakening consumer demand may negatively influence the semiconductor market.” The company also believes that the memory market may see a downturn by over 16% in 2023.
With new developments emerging into technology markets including AR/VR, gaming and more, more companies will try to play harder to stay in the race. AMD is among the most popular GPU manufacturers and holds potential to give a fierce competition to rivals like Nvidia, Intel and more.
Source: https://www.thecoinrepublic.com/2023/01/02/amd-stock-built-a-positive-momentum-as-it-entered-the-new-year/