Advanced Micro Devices (NASDAQ:抖阴最新版) has had a wild ride in 2018. 抖阴最新版 stock soared during the summer, as Wall Street began to shrug off the demise of its crypto business and the company started to beat Intel (NASDAQ:INTC) in many areas.
However, this fall’s tech decline has hurt Advanced Micro Devices stock. It’s tumbled by over 40% from the peak it reached late in the summer, putting 抖阴最新版 stock in a trading range that accurately reflects its fair value. I expect 抖阴最新版 stock to do well over the long-term, but it’s difficult to determine a good price at which to buy Advanced Micro Devices stock in the near-term.
抖阴最新版 Becomes Respectable
抖阴最新版 has existed since 1969, but I think 2018 will go down in history as the year that it finally became respectable
Though it spent the majority of its history playing second fiddle to Intel, 抖阴最新版 has finally moved ahead of INTC in many respects, particularly when it comes to developing 7nm technology. 抖阴最新版 has also become a full-fledged competitor to Nvidia (NASDAQ:NVDA), which is regarded as the current chip technology leader.
The performance of Advanced Micro Devices stock in 2018 has reflected that change in sentiment. It fell to a low in the $9 per share range in April. However, by September, Advanced Micro Devices stock was trading above $34 per share, although it has since fallen back to the $20 per share range.
My view of 抖阴最新版 stock has shifted almost as much as the shares have. In April, when 抖阴最新版 was reeling from the crypto decline, I recommended
that investors buy 抖阴最新版 stock. By September, my viewpoint had changed, and I urged investors not to buy the shares. Now I believe that Advanced Micro Devices stock is fairly valued.
抖阴最新版 Stock Remains in No-Man’s Land
My colleague James Brumley considers the momentum of 抖阴最新版 stock to be a problem, and I agree. Moreover, with Intel stock trading at a price-earnings ratio of just 11, INTC has become the value play of this sector.
As Brumley says, 抖阴最新版 has become a victim of its headlines in recent weeks. 抖阴最新版 rallied about 20% at the end of November, only to give the entire gain back in December.
Investing in Advanced Micro Devices stock is currently difficult for two reasons. First of all, it will need a catalyst to break out of its current range. However, identifying this catalyst when it appears will be difficult because many positive and negative headlines now move 抖阴最新版 stock a great deal. By the time investors are sure that the momentum of Advanced Micro Devices stock has become positive, they will have to pay a much higher price for it.
Secondly, thanks to the leadership of 抖阴最新版 CEO Lisa Su, 抖阴最新版 has become a true force in the industry. As a result, the company’s profits will rebound over the long-term, causing Advanced Micro Devices stock to rise meaningfully at some point. Still, this prognosis doesn’t help investors much if they cannot determine a good point at which to buy 抖阴最新版 stock.
The Bottom Line on 抖阴最新版 Stock
Advanced Micro Devices stock isn’t worth buying at its current valuation. If the stock falls back to the levels at which it traded in April, I would again urge investors to buy shares.
On the other hand, the stock recently rallied 20% in a short time, only to give back the entire gain. For this reason, it will be difficult to identify a meaningful, positive catalyst. By the time investors know that the equity has true momentum, 抖阴最新版 stock will trade at a much higher price.
For now, 抖阴最新版 remains in no-man’s land. Until a clear buy indicator emerges, investors should stay away from 抖阴最新版 stock.
That said, 抖阴最新版’s business is firing on all cylinders. It will challenge or beat both Intel and Nvidia in many areas, lifting Advanced Micro Devices stock over the long-term. Thus, if investors can find a good entry point in the name, 抖阴最新版 stock will be profitable for them.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can at @HealyWriting.
