AMD - Has Correction Completed?

2022年5月9日

AMD might be a challenger or a leader in some specific areas compared to the competitors like Intel and NVIDIA.
But there is no doubt that it is one of few leaders in a semiconductor industry as a whole and it's here to stay.

The question is - is time to buy the dip having a discount at nearly 50% from the historic high?

Fundamental indicators:

• Revenue and Profits - consistent growth for the past 10 years
  
• Profit margin - the company is becoming more effective with a respectful 25% in 2021
  
• P/E - although still overpriced with 54x ratio it has considerable reduced from circa 200 since 2019
  
• Liabilities - no problems with debt
  

Technical Analysis (Elliott Waves):

• According to the proposed scenario since the point when the current correction has started we have observed a circa 50% correction to wave 3
  
• The rapid drop tells us that it is most likely to be an ABC pattern
  
• Wave A of this zigzag was an impulse, wave B formed as a running flat and the current choppy movement resembles an Ending Diagonal where waves 1-3 have already completed
  
• Wave 4 can be expected to be quite deep to wave 3 in the region of $116 and then to be followed by the final 5th wave drop to circa $80 to complete the whole corrective wave and start the new growth cycle
  

Given the deficits in the semiconductor industry which is currently the main source for the expansion of world digital economies do you think AMD is soon to start the new bull run?

What do you think about this idea?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.

Thanks