How to Trade AMD After Q3 Performance

<p><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-amd-q3-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_idea_of_the_week_AMD-2.png" data- data- data-alt="Trade idea of the week AMD" data-height="376" data-width="800"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_idea_of_the_week_AMD-2.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_idea_of_the_week_AMD-2.png"></source></picture></a></p><p>Chip stocks have received a lot of attention this year due to an increase in demand from the AI industry. Will the new source of revenue boost corporate profits or is it still too early to determine? Learn more about AMD's latest earnings report, third-quarter performance and what the analysts are forecasting for the stock.</p><table border="1">
<tbody>
<tr>
<td><b><span>Stock:</span></b></td>
<td><span><b>Advanced Micro Devices Inc</b></span></td>
</tr>
<tr>
<td><span><b>Symbol for Invest.MT5 Account:</b></span></td>
<td><a href="https://admiralmarkets.com/instrument/advanced-micro-devices-inc-amd" target="_blank" rel="noopener">AMD</a></td>
</tr>
<tr>
<td><span><b>Date of Idea:</b></span></td>
<td>1 November 2023</td>
</tr>
<tr>
<td><span><b>Time Line:</b></span></td>
<td>1 – 6 months</td>
</tr>
<tr>
<td><span><b>Entry Level:</b></span></td>
<td>$100.00</td>
</tr>
<tr>
<td><span><b>Target Level:</b></span></td>
<td>$155.00</td>
</tr>
<tr>
<td><span><b>Position Size for Invest.MT5 Account:</b></span></td>
<td>Max 5%</td>
</tr>
<tr>
<td><span><b>Risk:</b></span></td>
<td>High</td>
</tr>
</tbody>
</table><ul>
<li>The <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.</li>
</ul><div>
<div data-symbol="AMD" data-interval="D"></div>
<div>Source: <a rel="nofollow noopener" href="https://www.tradingview.com/" target="_blank"><span>TradingView</span></a>. Past performance is not a reliable indicator of future performance or results.</div>
</div><p><span>All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a </span><a href="https://admiralmarkets.com/start-trading/forex-demo" target="_blank" rel="noopener">demo account</a><span> first to build your knowledge before investing. </span></p><p><a href="https://admiralmarkets.com/instrument/advanced-micro-devices-inc-amd" target="_blank" rel="noopener"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-amd-q3-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_AMD-9.png" data- data- data-alt="Trade AMD" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_AMD-9.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_AMD-9.png"></source></picture></a></a></p><h2>AMD Fiscal Q3 2023 Performance</h2><p>Here are some of the key highlights from the latest fiscal third-quarter <a rel="nofollow noopener" href="https://ir.amd.com/news-events/press-releases/detail/1163/amd-reports-third-quarter-2023-financial-results" target="_blank">earnings report</a> from AMD: </p><ul>
<li>Earnings per share of 70 cents vs 68 cents expected </li>
<li>Revenue of $5.8 billion vs $5.7 billion expected </li>
<li>Revenue increase of 4% compared to a year earlier </li>
<li>Gaming sector revenue down 8% </li>
<li>Embedded sector revenues down 5% </li>
<li>Client segment (personal computing) revenue up 42% </li>
<li>Expected fourth-quarter sales of $6.1 billion vs $6.37 billion expected </li>
<li>Data centre GPU revenue forecast of $2 billion in 2024 </li>
</ul><p>AMD beat analyst expectations on both earnings per share and revenue. However, on the <a rel="nofollow noopener" href="https://www.cnbc.com/2023/10/31/amd-earnings-report-q3-2023.html" target="_blank">earnings call</a> the stock dipped on the weaker-than-expected forecast for its fourth-quarter sales. AMD forecasts $6.1 billion worth of sales while the market was expecting $6.37 billion but no reasons were given for the lower forecast. Revenue was lower in most sectors but a standout performance in the client segment division helped to boost overall figures.  </p><p>While the mixed report initially sent the stock lower, the price recovered after AMD announced its forecast for its new MI300 series of chips which is set to challenge Nvidia's dominance in the AI sector. AMD believes sales could exceed $2 billion in 2024 from this chip alone. AMD's chips are used to train and deploy generative artificial intelligence models.  </p><p>The higher sales forecasts for its series of AI chips are due to the fact they are now ready to produce the chip at volume and AMD already has purchase commitments lined up – although we don't know how much of the $2 billion forecast is actual commitments. The mixed report led some analysts to lower their price target for AMD's stock price.   </p><p>It's important to take into consideration that keywords such as AI tend to create more hype around stock and can lead its share price to levels that are not in line with company fundamentals. Some analysts lowered their stock price forecasts to take into consideration the lower revenue figures in its gaming and embedded divisions – a worrying trend if it does continue.</p><h2 aria-level="2">AMD Stock Forecast – What do the Analysts Say?</h2><p>According to analysts polled by TipRanks for an AMD stock forecast in the past 3 months, there are currently 22 buy, 7 hold and 0 sell ratings on the stock. The highest price level for an AMD stock forecast is $155.00 with the lowest price target at $95.00. </p><p>The average price target for an AMD stock forecast is $131.29.</p><figure><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-amd-q3-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/amd_stock_price_analyst_forecast.PNG" data- data- data-alt="amd stock price analyst forecast" data-height="421" data-width="1023"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/amd_stock_price_analyst_forecast.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/amd_stock_price_analyst_forecast.PNG"></source></picture></a>
<figcaption>Source: <a rel="nofollow noopener" href="https://www.tipranks.com/stocks/amd/forecast" target="_blank">TipRanks</a>, 1 November 2023</figcaption>
</figure><p aria-level="2"> </p><h2 aria-level="2"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-para>An Example Trading Idea for </span><span data-ccp-para>the <span data-ccp-para> AMD</span><span data-ccp-para> Stock Price</span></span></span></h2><ul>
<li>An example trading idea for the AMD share price could be as follows:  </li>
<li>Buy the stock on a pull back to the post-earnings high at $100.00 to allow for volatility. </li>
<li>Target just below the highest analyst price target of $155.00. </li>
<li>Keep your risk small at a maximum of 5% of your total account.   </li>
<li>Time Line = 1 – 6 months  </li>
<li>If you buy 10 AMD shares:  
<ul>
<li>If target is reached = $550.00 potential profit [($155.00 – $100.00) * 10 shares].</li>
</ul>
</li>
</ul><p>Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the higher level of volatility in AI-related stocks.</p><p>Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.</p><p>With the Admirals <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in AMD stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.</p><p>There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! </p><h2 aria-level="2"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-para>How to Buy </span><span data-ccp-para> AMD</span><span data-ccp-para> Stock in 4 Steps </span></span><span data-ccp-props='{"201341983":0,"335559738":40,"335559739":0,"335559740":259}'> </span></h2><p><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span>With Admirals, you can buy shares in companies like AMD</span><span> with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. </span></span></span></span></span></span></p><ol>
<li><a href="https://admiralmarkets.com/signup" target="_blank" rel="noopener">Open an account</a> with Admirals to access the dashboard.   </li>
<li>Click on Trade on one of your live or demo accounts to open the web platform.   </li>
<li>Search for your stock in the search window at the top right to view the live price chart. </li>
<li>Click Create New Order from the bottom of the screen to open the trading ticket. </li>
</ol><figure><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-amd-q3-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/amd_stock_price_chart_monthly_mt5_web.PNG" data- data- data-alt="amd stock price chart monthly mt5 web" data-height="453" data-width="1100"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/amd_stock_price_chart_monthly_mt5_web.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/amd_stock_price_chart_monthly_mt5_web.PNG"></source></picture></a>
<figcaption>Source: Admirals <a href="https://admiralmarkets.com/trading-platforms/webtrader" target="_blank" rel="noopener">MetaTrader</a> 5. AMD. Monthly. Date: Jan 2016 to Nov 2023, captured on 1 Nov 2023. Past performance is not a reliable indicator of future results or future performance.</figcaption>
</figure><p> </p><p>Click on the banner below to trade AMD stock today! ▼▼▼ </p><p><a href="https://admiralmarkets.com/instrument/advanced-micro-devices-inc-amd" target="_blank" rel="noopener"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-amd-q3-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_AMD-10.png" data- data- data-alt="Trade AMD" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_AMD-10.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_AMD-10.png"></source></picture></a></a></p><h2 aria-level="2"><span data-ccp-props='{"201341983":0,"335559738":40,"335559739":0,"335559740":259}'><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-para>Do You See </span><span data-ccp-para>the AMD Stock Price</span><span data-ccp-para> Moving Differently? </span></span><span data-ccp-props='{"201341983":0,"335559738":40,"335559739":0,"335559740":259}'> </span> </span></h2><p>Remember that all analytics and trading ideas are based on the personal view and experience of the author.</p><p>If you believe there is a higher chance AMD share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.</p><p>The <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT5</a> and <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT4</a> account allows you to speculate on the price direction of stocks and shares using CFDs.</p><p>This means you can trade long and short to potentially profit from rising and falling stock prices.</p><p aria-level="3"><b>INFORMATION ABOUT ANALYTICAL MATERIALS:   </b></p><p>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   </p><ul>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    </li>
</ul><ul>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the <a href="https://admiralmarkets.com/risk-disclosure" target="_blank" rel="noopener">risks involved. </a></li>
</ul>