Stock Of The Week: Expert Opinion On What Stock To Watch
Experts share their opinions to help with your investment decisions.
What a week. Many of the companies within the S&P 500 have experienced severe falls which have in turn majorly affected the index. Stability within stocks has been almost nonexistent and traders will be tested for their resolve when choosing whether to sell losing assets, or buy further stocks in the current dip, hopeful of an increase.
While stocks for the majority of S&P companies have been turbulent, there are a few whose share price has remained relatively stable in comparison; AMD is one of them.
After having recently experienced a 48% fall from its November high, AMD has bounced back and though it has dipped and risen a few times following AMD’s recent earnings report, it will be interesting to see whether any upside momentum can be sustained in the current environment.
AMD’s latest earnings report has confirmed record quarterly revenues of $5.8 billion (+71% YoY) and they forecast even stronger growth going forward as an upcoming increase in data centres and cloud computing is expected to only boost demand for their computer chips.
On top of this, the company is looking to diversify its markets, entering into automotive tech and 5G mobile networks such as through the acquisition of Xilinx, a major player in the integrated circuits industry. AMD is also looking into integrating Xilinx’s AI optimised circuitry into their CPU products for increased performance.
With the company expecting revenues to reach $6.5 billion in the second quarter, things look promising for investors. However, as the current economic climate has highlighted, nothing is certain and investors should always be mindful of any risk-reward trade-off.
When thinking about whether to sell stocks in case of further dips, or buy more stocks while they’re down, this decision is entirely in the hands of each individual investor, but our advice is to only trade what you can afford to potentially lose.
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