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Advanced Micro Devices (AMD) Plunges to 1-Month Low As Tech Stocks Dip
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Shares of Advanced Micro Devices (AMD - Free Report) plunged more than 3% in early morning trading Monday, extending what has been a turbulent month for the semiconductor maker and underscoring the recent industry-wide dip in tech stocks.
After falling more than 3% last week, AMD shares kicked off the current week by slumping to a new one-month low of $11.86 early Monday morning. The trendy graphics chip manufacturer has now lost more than 10% over the past four weeks.
Nevertheless, Advanced Micro Devices remains a Zacks Rank #2 (Buy) with excellent growth prospects. After AMD surpassed the Zacks Consensus Estimate for earnings by two cents in the most recent quarter, estimates for the company’s upcoming fiscal periods have been trending upward; now, our consensus estimates are calling for EPS growth of nearly 140% and sales growth of more than 15% in AMD’s current quarter.
Investors should note the strength of AMD’s earnings results and estimates because it is not weakness in these areas that has sent the stock down in recent weeks. Instead, it appears as if heightened volatility has made life more difficult for some of the market’s most talked about stocks.
Indeed, the CBOE Volatility Index has climbed nearly 50% so far this month, and tense political conditions—both domestically and abroad—look poised to deliver the VIX’s biggest one-month gain since August 2015.
On the international front, last week’s deadly terror attacks in Barcelona and Finland have once again led to increased security concerns throughout Europe, and here at home, concerns about President Donald Trump’s unpopularity have made investors hesitant.
After Trump’s controversial response to the white nationalist rally in Charlottesville led to a mass exodus of business executives from his advisory councils, the White House’s flames were further stoked by Friday’s dismissal of Chief Strategist Steve Bannon.
The chaotic week revealed widespread turmoil in the Trump-era GOP, leading some investors to question whether the Republican’s will be able to deliver their pro-growth economic policies on time. Add in the party’s inability to pass its Obamacare repeal, and it’s easy to see why some are losing confidence in the long-awaited tax reform and infrastructure investment deals.
And with this increased volatility, we’ve seen the markets retreat a bit, especially in the previously red-hot technology sector. In fact, as the major indices have slumped, the tech-heavy Nasdaq has led the way, shedding nearly 2.75% over the past two weeks.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Advanced Micro Devices (AMD) Plunges to 1-Month Low As Tech Stocks Dip
Shares of Advanced Micro Devices (AMD - Free Report) plunged more than 3% in early morning trading Monday, extending what has been a turbulent month for the semiconductor maker and underscoring the recent industry-wide dip in tech stocks.
After falling more than 3% last week, AMD shares kicked off the current week by slumping to a new one-month low of $11.86 early Monday morning. The trendy graphics chip manufacturer has now lost more than 10% over the past four weeks.
Nevertheless, Advanced Micro Devices remains a Zacks Rank #2 (Buy) with excellent growth prospects. After AMD surpassed the Zacks Consensus Estimate for earnings by two cents in the most recent quarter, estimates for the company’s upcoming fiscal periods have been trending upward; now, our consensus estimates are calling for EPS growth of nearly 140% and sales growth of more than 15% in AMD’s current quarter.
Investors should note the strength of AMD’s earnings results and estimates because it is not weakness in these areas that has sent the stock down in recent weeks. Instead, it appears as if heightened volatility has made life more difficult for some of the market’s most talked about stocks.
Indeed, the CBOE Volatility Index has climbed nearly 50% so far this month, and tense political conditions—both domestically and abroad—look poised to deliver the VIX’s biggest one-month gain since August 2015.
On the international front, last week’s deadly terror attacks in Barcelona and Finland have once again led to increased security concerns throughout Europe, and here at home, concerns about President Donald Trump’s unpopularity have made investors hesitant.
After Trump’s controversial response to the white nationalist rally in Charlottesville led to a mass exodus of business executives from his advisory councils, the White House’s flames were further stoked by Friday’s dismissal of Chief Strategist Steve Bannon.
The chaotic week revealed widespread turmoil in the Trump-era GOP, leading some investors to question whether the Republican’s will be able to deliver their pro-growth economic policies on time. Add in the party’s inability to pass its Obamacare repeal, and it’s easy to see why some are losing confidence in the long-awaited tax reform and infrastructure investment deals.
And with this increased volatility, we’ve seen the markets retreat a bit, especially in the previously red-hot technology sector. In fact, as the major indices have slumped, the tech-heavy Nasdaq has led the way, shedding nearly 2.75% over the past two weeks.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>