Advanced Micro Devices Inc (AMD)

[IanFromSI]

It's called, "Don't fight the Fed".

The Fed has been fighting a feared recession for close to 2 decades, perhaps a bit longer.

After their main weapon was completely used(interest rates near zero), it started several rounds of quantitative easing. With inflation now rearing its ugly head, all that will be withdrawn -- the excess liguidity is being removed and interest rates will go up to normal levels.

That doesn't change the fact that AMD is taking share from INTC and will continue to do so for the foreseeable future. INTC no longer has Andy Grove (Only The Paranoid Survive) and has lost its technical leadership and its ability to leapfrog its competition. The world of chips changed, INTC didn't.

So AMD and NVDA will continue to take market share from INTC, continue to improve margins and profits, and continue to build a much stronger balance sheet. Might the stock price continue to go down while its financials continue to improve? Almost certainly. But once the Fed takes both feet off the brakes, companies should again be judged based upon their own fundamentals.

I'm no longer a day trader nor anything close to it. I'll hold rather than attempt to time a new entry point.
FWIW,

Ian