Advanced Micro Devices (AMD) is just one of nine fabless semiconductor stocks in the top 6% of all companies in terms of key stock-picking factors. As AMD stock fires up a fresh breakout, the company is expanding its reach into handheld game consoles and getting set to showcase its next-gen artificial intelligence technology.
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Fellow chip stocks sporting stellar Composite Ratings include Nvidia (NVDA), Mobileye Global (MBLY), Broadcom (AVGO) and Rambus (RMBS).
Lattice Semiconductor (LSCC), Impinj (PI) and blockchain-focused March IPO Intchains (ICG) also earn that honor.
Early Thursday, AMD, RMBS, AVGO and NVDA stock are leading the charge of semiconductor stocks.
AMD Stock Joins Nvidia, Mobileye Among Top-Rated Chip Stocks
Despite recent post-earnings declines in stocks that include Impinj and Mobileye, the fabless semiconductor group ranks a solid No. 24 out of the 197 industry groups IBD tracks.
The Accumulation/Distribution Rating tracks institutional, big-lot buying and selling over the last 13 weeks.
The A+ rating for AMD stock, tying Intchains, points to heavy buying during that period. Nvidia stock, which is closing in on a new all-time high, scores an A rating.
Grades for Mobileye and Impinj have slipped to a “C+”.
AMD and other chip designers on this screen did not join Broadcom on the latest list of new buys by the best mutual funds. But 38 funds with an “A+” rating from IBD own shares in AMD stock. Plus, further confirming demand, AMD earns a 1.5 up/down volume ratio.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Rambus | RMBS | 99 | 97 | 98 | A | B+ |
| Allegro MicroSystems | ALGM | 99 | 99 | 94 | A | C- |
| Broadcom | AVGO | 98 | 96 | 90 | A | B+ |
| Lattice Semiconductor | LSCC | 98 | 99 | 92 | A | C |
| Mobileye Global | MBLY | 97 | 94 | 88 | A | C+ |
| Nvidia | NVDA | 97 | 63 | 98 | B | A |
| Intchains | ICG | 96 | 70 | 91 | A | A+ |
| Impinj | PI | 95 | 81 | 85 | A | C+ |
| Advanced Micro Devices | AMD | 94 | 71 | 92 | B | A+ |
AMD Unveils AI Tech, Channels Inner ‘Zen’
Earlier this month, Advanced Micro Devices announced the “AMD Data Center and AI Technology Premiere.” The in-person and livestreamed event showcases the chip designer’s growth strategy and expanding offerings for data centers and AI. AMD Chair and CEO Dr. Lisa Su will join other AMD executives and key customers.
In April, AMD expanded its “Zen 4” lineup into handheld console games with the introduction of the Ryzen Z1 series processors. The Ryzen Z1 series offers the ultimate high-performance processor for handheld PC gaming consoles. It features two high performance processors, the Ryzen Z1 and Ryzen Z1 Extreme. Both provide industry-leading gaming experiences, uncompromising battery life, and featuring AMD RDNA 3 architecture-based graphics.
AMD Engineers Rebounding Earnings Estimates
On May 2, AMD reported Q1 earnings, topping analyst estimates. The company earned 60 cents per share on sales of $5.35 billion. Wall Street had expected 56 cents on $5.31 billion in revenue. But the stock initially fell on its outlook for Q2, but quickly recovered.
While analysts forecast a 44% slowdown in earnings in the second quarter and a 15% slowdown for the full year, the outlook for 2024 calls for a rebound to 47% EPS growth.
AMD Stock Rides Wave Of Heavy Volume Into Buy Zone
In the right side of its current cup pattern, AMD stock flashed multiple days of heavy-volume spikes. On the road to its 102.53 buy point, AMD soared back above its 50-day moving average. In a sign of rebounding technical strength, the 21-day exponential moving average also curled back above its 50-day line.
On Wednesday, AMD continued its heavy-volume rise, right into a buy zone. The stock is adding to its gains Thursday in volume trending well above average. AMD stock has climbed to the upper end of its buy range.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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