Correction imminent in Advanced Micro Devices Inc. (NASDAQ:AMD)?

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Advanced Micro Devices, Inc. is a world-class company with the innovation, execution, and vision to grow our leadership position in the industry. Today’s world-class companies share three essential characteristics. First, they deliver innovative products and technologies that customers want. Second, they have established a proven track record of fast, efficient manufacturing execution. And third, they have a bold vision of where to take their business, and often their industry. Over the course of AMD’s three decades in business, silicon and software have become the steel and plastic of the worldwide digital economy. Technology companies have become global pacesetters, making technical advances at a prodigious rate always driving the industry to deliver more and more, faster and faster. AMD’s dedication to customer-centric innovation and competitive spirit is an unbroken thread running from our early days in the integrated circuit business, through an ever-broadening product portfolio.

Advanced Micro Devices, Inc. (NASDAQ:AMD) has been in the news for all the right reasons. Recently, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced its first-quarter 2017 financial results, posting adjusted earnings of -$0.07 and revenues of $984 million.

Currently, AMD is a Zacks Rank #2 (Buy), but this ranking could change based on today’s results. The stock is down 7.86% to $12.55 per share in trading shortly after its earnings report was released.

The Barchart Technical Opinion rating is a 72% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators mostly agree with the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 13.44 and 13.18 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .

Advanced Micro Devices, Inc. (NASDAQ:AMD) is all set to announce its earnings on May 01/a. As per Zack’s analyst ratings, Advanced Micro Devices, Inc. (NASDAQ:AMD) currently has an average brokerage rating of 2. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:AMD) is $12.09 with a high of $17 and a low of $5.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 53.47 suggesting a bullish price action.

As such, while we believe Advanced Micro Devices, Inc. (NASDAQ:AMD) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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