Advanced Micro Devices Inc (AMD)

[HailMary]

The AMD chart is insane.

This is really an amazing wall of worry. The market is supposed to be forward looking by six months.

Maybe it is. If you consider AMD could earn $1.50-$2.00/share next year, then the current price doesn't seem so ridiculous. After a couple of $.40-.50 quarters, $35 will look cheap. I would think the stock could trade much higher based purely on forward looking earnings.

I still have concerns over Intel's next gen stuff throwing a wrench into the valuation of AMD stock. It may be AMD can earn $.50/quarter, but the future might look bleak because of an Intel comeback, and in that case the stock is not going to get a very good multiple.