AMD one of the most intriguing tech stocks after being beaten to excessively oversold prices. The stock is just now reversing well off lows of $9. And we believe it could rally back to test $12.50, near-term.
The company has quite a catalyst with its Intel deal, a buy rating and a $17 price target from analysts at Canaccord Genuity.
The analysts noted, "We reiterate our positive thesis on AMD which is further underwritten by management's ability to monetize the portfolio as strong near-term crypto-currency GPU demand, stronger Ryzen sales and first Ryzen Mobile launches should alleviate risks in Q4/17, while H2/18 sets up as an inflection point with our industry checks indicating 7nm chip development timelines remain intact for what should prove even stronger CPU products across AMD's roadmap versus Intel during 2H/18 and 2019."
One of the biggest reasons the stock is down is because it was caught up in a sector-wide selloff. It's now far too oversold. Plus, the company's new lines should drive growth this year, too. In fact, both Ryzen CPUs and its data center chips could allow it to challenge Intel. Buying and holding AMD here for the long-term is not a bad idea at all.
Buy the AMD stock and/or the AMD June 15, 2018 10 calls.
