Trading volatility: AMD earnings
Can chipmaker AMD deliver an impressive enough outlook to see its share score new record highs? If Intel’s earnings are anything to go by, the numbers may be good, but it was the outlook that hit shares of Intel.
Analysts say 2024 will be a "make-or-break" period for Intel and the group has to start delivering solid profits from data centres and AI. Spending has shifted to AI data servers, which are dominated by Nvidia and Advanced Micro Devices. With AMD stealing a march on Intel, with its early move into semi-conductors for artificial intelligence servers the release on Tuesday 30 January, after the closing bell on Wall Street will be interesting.
(AI Video Summary)
Advanced Micro Devices (AMD) is set to release its fourth quarter earnings on Tuesday, and many analysts are predicting favorable results. Unlike Intel, which recently reported strong numbers but raised concerns with its forecast, AMD appears to be on a different path. AMD has been making impressive strides in artificial intelligence and server technology, surpassing Intel in these crucial areas. As a result, AMD's stock price has been steadily climbing, hitting record highs. With this positive trajectory, many traders are optimistic about AMD's earnings and future prospects, presenting an enticing opportunity to go long on the stock.
However, it's crucial for traders to implement a stop loss strategy to effectively manage their risk. In essence, a stop loss strategy determines a point where a trader will exit a trade if prices move against their expectations, thus limiting potential losses. By using this strategy, traders can be better prepared to navigate any sudden shifts in the market.
Overall, AMD's upcoming earnings announcement has the potential to stir up trading volatility once Wall Street closes its doors for the day. It's expected that the release of the company's financial results will have a significant impact on AMD's stock price, affecting the overall market sentiment towards the company. Traders will be closely monitoring these developments and adjusting their strategies accordingly to capitalize on any opportunities that arise. To illustrate, imagine you are a trader with little experience. Consider AMD as a fast-growing technology company that is gaining an edge in advanced technology like artificial intelligence and servers. While its competitor Intel had good financial results, there were concerns about its future. However, many believe that AMD's earnings and outlook will be positive, leading to an increase in its stock price. As a trader, it's important to set a stop loss strategy to reduce potential losses. Remember that the release of AMD's earnings could cause the stock market to become more unpredictable, so it's crucial to stay informed and adapt your trading strategy accordingly.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.
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