Advanced Micro Devices: What’s Killing AMD Stock?

Damage AMD StockWill Q4 Severely Damage AMD Stock?

Advanced Micro Devices, Inc. (NASDAQ:AMD) fell 6.6% by afternoon trading on Tuesday as analysts are expecting a loss in AMD stock’s fourth-quarter report, due January 31. AMD stock may be down, but that certainly doesn’t kill all the goodwill it acquired as the darling tech stock of 2016. The share price grew almost 300% over the course of 2016, and is expected to have a strong 2017 as well, although it’s unclear whether it will be able to replicate the absurd gains seen last year.

And, while the company may have fallen on Tuesday on the back of rumblings that it will register a loss in January 31’s fourth-quarter report, there’s still plenty to be excited about if you’re an AMD stock bull.

First, the chipmaker has received good press for its inclusion in the two most powerful gaming systems around: Sony Corp (ADR) (NYSE:SNE) “PlayStation 4” and Microsoft Corporation (NASDAQ:MSFT) “XBox One” consoles. (Source: “Advanced Micro Devices, Inc. (AMD) Stock Bulls Bet on a Beat,” InvestorPlace, January 17, 2017.)

On top of that, AMD stock is looking to make a big splash in the virtual reality (VR), machine learning, and Internet of Things (IoT) markets. All of these are set for big growth in coming years and, if the company can position itself as a pioneer or become the chipmaker of choice in these industries, you can expect to see some big things coming for AMD stock in the future.

But it’s not all rosebuds for AMD stock. A 6.46% shave is of course something that no investor wants to see. Couple that with the fact that short sellers have increased their holdings by five percent during the most recent period, and you have a couple of camps that are decidedly bearish on AMD stock, great performance in 2016 aside.

What’s next for AMD stock—and most crucial in the near term—is the fourth-quarter report. Expect to see some big moves coming out of the stock on January 31, and be sure to check back in as Profit Confidential keeps you updated right until that Q4 earnings news drops.