Advanced Micro Devices (NASDAQ:AMD) is a relentless innovator in the semiconductor industry. Yet, sometimes the market hands you a gift with a dip in AMD stock. When this happens, financial traders shouldn’t get nervous. If anything, it’s just an opportunity to add to your share position in Advanced Micro Devices.
Sentiment can change quickly on Wall Street. Investors liked Advanced Micro Devices in late 2021. Then, they disliked the company in 2022, but now they’re warming up to it once again.
If there’s any share-price pullback, that’s your signal to get in. As long as Advanced Micro Devices continues to deliver best-in-class tech components, there’s no reason for long-term investors to worry.
AMD Stock Isn’t Actually Expensive
AMD stock might look pricey after its run-up in March. Bear in mind, however, that the stock traded at $155 in November of 2021. Hence, there’s still room to run and any dips are definitely buy-able.
Besides, long-term investors aren’t afraid of share-price dips as Advanced Micro Devices continues to release game-changing products. The company’s competitors will have to go back to the drawing board as Advanced Micro Devices just released its fourth-generation EPYC Embedded processors.
Known as the EPYC Embedded 9004 Series, these processors are powered by Advanced Micro Devices’ Zen 4 architecture and can be scaled up to 96 cores. Furthermore, they features a thermal design power (TDP) profile that ranges from 200 watts to 400 watts.
It’s fine if you’re not conversant with all of this tech-geek talk. Just know that Advanced Micro Devices is keeping its rivals at bay with ultra-efficient and powerful products.
Prepare for a Blowout Earnings Release
AMD stock might pull back before Advanced Micro Devices has its next quarterly earnings release, which is scheduled to take place in a month. Any share-price dips are meant to be bought as Advanced Micro Devices is likely to knock it out of the park with Street-beating quarterly results.
As you may recall, Advanced Micro Devices beat analyst consensus estimates for revenue and earnings in 2022’s fourth quarter. At the same time, however, the company guided for a 10% year-over-year drop in first-quarter 2023 revenue.
Advanced Micro Devices also warned, “Year-over-year the Client and Gaming segments are expected to decline.” This is really just a setup for a positive surprise.
Despite rising inflation, supply chain disruptions and recession fears, Advanced Micro Devices demonstrated outstanding revenue growth in 2022 compared to 2021. There’s no reason to believe that the company’s sales cratered in early 2023, so get ready for an earnings-release blowout of epic proportions.
AMD Stock Dips Are Just Buying Opportunities
Advanced Micro Devices will undoubtedly continue to threaten its competition with fast and powerful processors. Truly, this company redefines the semiconductor market year after year.
Yet, there may be times when fickle financial traders bet against Advanced Micro Devices. That’s perfectly fine, as it’s just an opportunity to buy AMD stock at a more favorable price point. So, feel free to start or add to a share position in Advanced Micro Devices today, and then continue adding to it whenever the price goes down.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
