AMD
📖The chipmaker reportedly increased its server market share from 5% to 8% in 2019. According to a DigiTimes article, some semiconductor industry watchers expect that AMD could double its server market share in 2021 and end the year with 20% of the market. AMD has recently unveiled its third-generation EPYC server processor -- dubbed "Milan" -- based on the Zen 3 microarchitecture. AMD recently demonstrated two Milan processors at CES by having them run a weather prediction simulation, pitching them against Intel's Xeon Gold 6258R. The Milan was 68% faster than the Xeon processor in single-socket performance and 46% faster in dual-socket. AMD recently posted blowout Q4 results. Revenue jumped 53% year over year in the fourth quarter to $3.24 billion. Non-GAAP net income jumped 66% to $636 million, and earnings per share soared to $0.52 from $0.32 in the prior-year period. AMD expects 37% revenue growth in 2021. Wall Street analysts expect AMD to boost its CPU market share to 50% in 2021 as compared to 22.4% in the third quarter of 2020, driven by the chipmaker's technological advantage over Intel. Median price target for AMD is $107.5 which is 22% from current prices. 📈 AMD has been trading in a bullish price channel since June 2020. AMD has shown several clear consolidation and continuation patterns. The consolidation areas are highlighted in the blue zones. Often, when there is an extensive move in one direction, price action will pause before it makes its next impulsive move. When the price pauses and becomes range bound, this is known as consolidation. Price often continues in the same direction of the overall trend after a period of consolidation. Price has recently completed a 0.5 Fib retracement from October lows and January highs. Price has touched and reversal with a Hanging Man candlestick at the support level of the price channel. There is also some hidden bullish divergence in the RSi - price has printed higher highs but the RSI has made a double bottom. A move to the -0.5 Fib extension could see 25% more upside.
🔎This is not financial advice. Always do your own research and due diligence. Always wait for directional confirmation before entering a trade.