Since breaking out above $25 in late August, trading volume on Advanced Micro Devices (NASDAQ: AMD) more than quadrupled the average daily volume. The stock became a top-traded stock nearly daily in the last month. The bullishness, at least short-term, could be at a close. AMD stock broke below $30 a share and closed at $27.35 on Friday, Oct. 5.
AMD has clear technical leadership over the incumbent, Intel Corp. (NASDAQ: INTC). Intel lacks leadership and vision in the CPU space. It ventured into ADAS and programmable logic chips instead. But Intel’s recent i9 refresh, which is rumored to cost around $450, might not be the best chip out there. Ryzen and Threadripper are better options. Still, Intel’s brand name is better-known and consumers may still prefer to stick with the Intel name.
Ignoring the limited growth potential in the PC space, AMD shareholders must rely on EPYC taking market share in the server space to support higher profit margins. Similarly, the GPU space is not as profitable after crypto mining markets crashed. Previously, GPU cards enjoyed rich prices due to supply limitations. While Nvidia (NASDAQ: NVDA) rereleased an underwhelming RTX 2080 card, AMD has yet to refresh Vega and Polaris. The time to do that is now.
