RBC Thinks This Chip Stock's Rally Could Have Legs

AMD has already added 147% for the year

Digital Content Manager
Dec 24, 2019 at 9:34 AM
facebook X logo linkedin


A bull note from RBC helped lift the shares of semiconductor name Advanced Micro Devices, Inc. (NASDAQ:AMD) this morning. The stock is up 1.3%, now trading at a 12-year high of $46.06, after the analyst raised its price target to a Street high of $53 from $50. The broker also hiked it full-year forecast in order to reflect strengthening data center demand and its estimated margin increase in 2020. 

Anyone watching AMD this year can clearly see its near breakneck run up the charts, with two notable pullbacks neatly contained by the 200-day and the 30-day moving averages, respectively. Now the shares are eyeing their fourth consecutive win. For the year, Advanced Micro Devices has tacked on over 147%. 

More equity-boosting upgrades could be on their way, too. Right now, the consensus 12-month price target of $37.77 is at a roughly 18% discount to last night's close. Plus, 14 of the 21 in coverage still consider AMD a "hold."

The options pits tell a different story, though. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMD sports a 10-day call/put volume ratio of 2.34, which sits higher than 65% of readings from the past year. Echoing this, short-term options traders have rarely been more bullish, per the security's Schaeffer's open interest ratio (SOIR) of 0.92, which sits in the 4th percentile of its annual range. 

Plus, for those looking to speculate on AMD's next move, options are incredibly cheap right now. The stock's Schaeffer's Volatility Index (SVI) of 38% sits in the extremely low 3rd percentile of its annual range. This means options traders are pricing in relatively low volatility expectations. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI