Advanced Micro Devices (AMD): Earnings Report, Future at the Crypto Space, as well as also a New Low Price
AMD’s asset dropped as a result of its earnings accounts. Earnings were fine, but estimated earnings for second quarter were only a little lack luster.
The outcome may be that the asset went from the top of $14.13 on Tuesday Oct 2-4, 2017 right down to $ 1-2 on Thursday Oct 26, 2017.
NOTE: In retrospect AMD moved entirely to the top $10s. It’s after all been recovering slowly (by Nov. 27, 2017 ). In the event that you slipped right to a posture starting at $1 2, you’ve virtually broken and are more than possible to succeed with time. Meanwhile, in the event that you timed the floor it’s already repaid. With plays in this way, should you think in the business and the Cryptocurrency distance, averaging in although some are fleeing (specially after a wonderful earnings report) is scarcely the worst movement. You need to generate your own personal investment decisions, but things such as this are worthwhile considering on your own research.
The provider is a well liked for GPU miners (people that mine Cryptocurrency using GPUs just like the people AMD creates ). But, AMD expects a diminished requirement from the crypto store (some thing that’s fueled their growth recently). [1 ]
“We’re also predicting that there will be some leveling off of some of the cryptocurrency demand. As we look at it, it continues to be a factor, but we’ve seen restocking in the channels and stuff like that. So we’re being a little bit conservative on the cryptocurrency side of the equation,”
-CEO Lisa Su said, as per your FactSet transcript.
AMD itself “being a little bit conservative on the cryptocurrency” is noteworthy… however it talks with their own projections to the crypto distance, perhaps not everything will inevitably be the situation.
For people that think Bitcoin’s current $6k cost isn’t the top, and especially for those who think altcoins have a future as well, AMD is probably worth looking at despite their conservative projections.
After-all, while few will be mining Bitcoin with a GPU, if cryptocurrency prevails or increases in popularity, many altcoins will be mined with GPUs moving forward. That means people will be purchasing AMD GPUs regardless.
All that said, “taking a look at” is going to mean different things to different people. That could mean looking out for purchase ratings, that could mean dollar cost averaging (to protect against the cost going down), or that could mean waiting to see some recovery. UPDATE: AMD dropped to the mid $11s on Oct 27 after this article was written, so waiting for some recovery isn’t a poor movement. Obviously, when the point is to maintain a watch out for it in $ 1-2, then that’s just more authentic the low it belongs.
With all the aforementioned we aren’t in the business of giving asset tips, so look elsewhere for that (for example, look at the buy/sell rating your asset broker offers).
The idea here is simply to make you aware that 1. like NVIDIA, AMD is a player in the crypto space and 2. The earnings report just came out and the asset cost dropped.
See what CoinDesk has to say about AMD:AMD CEO Sees ‘Leveling Off’ in Cryptocurrency Mining Demand Oct 25, 2017 at 19:10 UTC by Aaron Stanley.
Also, on a related note, NVIDIA is getting ready to release earnings. So keep an eye on them. It could be that they follow AMD and drop based on projected demand in the crypto space. Or it could be the opposite. No one knows, but here is an article on that from InvestorPlace.com:Can We Expect Nvidia Corporation Stock to Plunge After Earnings Like AMD? Look for a pullback in NVDA ahead of the November earnings report.
NOTE: The author currently owns AMD asset (and Bitcoin… and some altcoins… and is waiting for a dip to rebuy NVDA). Our aim here is to cover the major players in the crypto space. You should assume we are actively trying to make smart investments in crypto and crypto related products and then convey what we learn. The idea being that we put our money where our mouth is and attempt to relay before all else hand experience with trading, investing, mining, etc (would be lame if we didn’t). That said, we aren’t offering expert investing, taxation, legal, and so forth information. Please visit our disclaimer from the side bar.