Home  »  Companies   »  Why Has Advanced Micro Devices Inc.’s (NASDA...

Why Has Advanced Micro Devices Inc.’s (NASDAQ: AMD) Share Price Dropped So Much?

Advanced Micro Devices Inc. (NASDAQ:AMD) price closed higher on Friday, February 09, jumping 172.48% below its previous close.

A look at the daily price movement shows that the last close reads $192.78. The company’s 5Y monthly beta was ticking 1.63 while its P/E ratio in the trailing 12-month period read 329.60. Taking into account the 52-week price action we note that the stock hit a 52-week high of $184.92 and 52-week low of $75.92. The stock added 16.12% on its value in the past month.

#1 Small-Cap Uranium Stock for Ultra-Fast Gains in 2024

We've uncovered THE ONE small-cap uranium stock that has unearthed a near-surface, high-grade uranium discovery in the Saudi Arabia of Uranium — Canada's prolific Athabasca Basin. Best of all, this small-cap uranium stock is currently flying just below Wall Street's radar… giving you the early-entry opportunity around US$0.30 per share. But that won't last long. Drills are turning right now with results set to be released to the market very, very soon.

Learn all about it in this brand new FREE online report.
Sponsored

Advanced Micro Devices Inc., which has a market valuation of $278.69 billion, is expected to release its quarterly earnings report Apr 30, 2024 – May 06, 2024. Analysts tracking AMD have forecast the quarterly EPS to grow by 0.6 per share this quarter, while the same analysts predict the annual EPS to hit $3.61 for the year 2024 and up to $5.45 for 2025. In this case, analysts estimate an annual EPS growth of 36.20% for the year and 51.00% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $5.43 billion, with the likely lows of $5.39 billion and highs of $5.7 billion. The average estimate suggests sales growth for the quarter will likely rise by 1.50% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $25.76 billion for the company’s annual revenue in 2024. Per this projection, the revenue is forecast to grow 13.60% above that which the company brought in 2024.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give AMD a short term outlook of 100% Buy on average. Looking at the stock’s medium term indicators we note that it is averaging as a 100% Buy, while an average of long term indicators are currently assigning the stock as 100% Buy.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 13.20. The overview shows that AMD’s price is at present -0.50% off the SMA20 and 10.16% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 59.06, with weekly volatility standing at 3.81%. The indicator jumps to 4.50% when calculated based on the past 30 days. Advanced Micro Devices Inc. (NASDAQ:AMD)’s beta value is holding at 1.63, while the average true range (ATR) indicator is currently reading 6.89.

Turning out attention to how the Advanced Micro Devices Inc. stock has performed in comparison to its peers in the industry, here’s what we find: AMD’s stock is 172.48% on the day and 103.66% in the past 12 months, while NVIDIA Corp. (NVDA) traded 3.58%% in the last session and was positioned 231.07% up on its price 12 months ago. Turning out attention to how the Advanced Micro Devices Inc. stock has performed in comparison to its peers in the industry, here’s what we find: AMD’s stock is 172.48% on the day and 103.66% in the past 12 months, while NVIDIA Corp. (NVDA) traded 3.58%% in the last session and was positioned 231.07% up on its price 12 months ago. Another comparison is with Intel Corp. (INTC) whose stock price was up 1.91%% in the last trading session, and has flourished 51.70% over the past year. Also, Applied Materials Inc. (AMAT) showed up trend of 6.87%% while its price kept floating at 59.48% over the past year. As for Advanced Micro Devices Inc., the P/E ratio stands at 329.60 higher than that of NVIDIA Corp.’s at 95.24 and Intel Corp.’s 112.26.

An analysis of the Advanced Micro Devices Inc. (NASDAQ:AMD) stock in terms of its daily trading volume indicates that the 3-month average is 0.80. However, this figure increases on the past 10-day timeline to an average of 81.7 million.

Current records show that the company has 1.62B in outstanding shares. The insiders’ percentage holdings are 1.07% of outstanding shares while the percentage share held by institutions stands at 69.18%. The stats also highlight that short interest as of Jan 31, 2024, stood at 39.85 million shares, which puts the short ratio at the time at 0.43. From this we can glean that short interest is 2.47% of company’s current outstanding shares. Notably, we see that shares short in January fall slightly given the previous month’s figure stood at 49.15 million. But the 17.01% upside, the stock’s price has registered year-to-date as of last trading, will likely reignite investor interest given the prospect of it rallying even higher.