$AMD TOP 20
Added 2024-10-30 11:02:22 +0000 UTCI have done some research this morning on $AMD after their earnings, having listened to their earnings call and trying to figure out what caused the aggressive drop.....the Rev guidance for Q4 is small but still negative, that is one explanation but as always, I think the FCF hit spooked the most
So $AMD made two big acquisitions in the last quarter, Silo AI and ZT Systems, for $665 Million and ZT Systems for $4.9 Billion....it is my understanding that ZT won't be paid for until next year....but Silo AI was paid, the FCF missed by $680 million, which seems very aligned with the Silo AI buy price.
I heard no mention of the FCF miss in the Earnings Calls, so I am assuming that institutions are fully aware of this and have no concerns for this either.
So the only issue is the Rev guidance for Q4....gaming also was negative but it is less than 10% of total revenue.
So with all of that considered, the share price is down but I don't see any issues with the overall fundamentals and this pull back should be considered an opportunity.
We can see on the chart today, that the pull back is still above the yellow support trend line and only at the 0.5 Fib at $153.
The price can still go to the 0.618 Fib at $148 and still be on the outside of this support line.
Losing $148 and the next support level is $141.
Only if the price goes below $131 would I consider the impulse wave broken down....and that is a long way to go.
So let's see where support can come and if it can hold above $148, I would consider adding again.
