AMD’s stock price fell sharply

AMD announced its second-quarter 2021 financial report at the end of July last year, breaking the single-quarter revenue record again, achieving year-on-year growth of 99% and a month-on-month growth of 12%. The gross profit margin also reached 48%, an increase of 4% year-on-year. The strong momentum is naturally also reflected in the investment market. In the U.S. stock market on July 29, AMD’s stock price soared, breaking through the $100 mark historically, reaching an intraday high of $105.732, and finally closing at $102.950.

In the second half of 2021, AMD’s stock price entered the fast lane and ran wild. In November, several investment institutions issued new reports, raising their target stock price for AMD, generally raising the target stock price of AMD to more than $160. However, entering December, AMD’s short positions have shown an upward trend. The increase in shorts is a negative message, indicating that more investors believe that the stock price will decline in the coming period, and individual investment institutions have also downgraded AMD stock’s rating from “buy” to “hold”. At the same time, AMD executives were busy selling their stocks, with CEO Dr. Lisa Su selling about $36 million in stock twice.

In fact, after reaching a high in late November last year, AMD’s stock price has continued to decline amid the turmoil. After entering 2022, it has fallen by more than 18%, which is nearly 30% lower than the highest point and has now fallen back to $118.81.

At present, more investment institutions have lowered the rating of AMD stock, and the target stock price has also been generally lowered. The expected slowdown in the PC market, uncertainty about earnings growth after the completion of the acquisition of Xilinx, and broader market dynamics risks are all reasons for concern among investment institutions.

At present, AMD’s stock price has fallen to the vicinity of the bearing point of the rising trend line. If it cannot be stabilized, it means that the sentiment towards AMD’s stock price will tend to decline and be negative for a period of time in the future.

Similar to AMD is its competitor Nvidia, which has reached an all-time high of $346.36 since November 22 last year under the thrust of the data center business. Since then, Nvidia’s share price has also continued to decline and has now fallen back to $233.74.