Buy AMD in anticipation of the next gen game consoles Ps5 and Xbox X
Next console cycle begins in the fall of 2020 with the release of the Sony PS5 and Msft Xbox X.
The console mkt is expected to grow from 50B to 75B by 2025. AMD offers the best CPUs and GPUs for gaming performances, and could become the reference for many years ahead. In previous cycles Microsoft and Sony relied on different suppliers (for CPUs/GPUs), this cycle AMD takes it all. AMD dollar revenue per console is expected to be a 75% step up from last year’s shipments for the PS4 (SOURCE: Newzoo, AtonRâ Partners, Xbox, Sony). Valuation is not excessive: P/E to growth at 1x, P/Sales below 10x.
Technically the uptrend is intact riding above a rising 40 week or 200 day moving average (orange line). It rose 7% yesterday breaching through a short-term bull flag formation, along with rising momentum and volume on the daily timeframe. The next test will be the all-time high around $59, on which the stock failed three times since February (will it burst this time?). A successful assault of $60, would pave the way to significant upside with $69 in sight over the short-term, then $80 to $100 over the medium term.
A move back below 49, would on the other hand annul the bull case.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
