AMD landed on the trader radar after the chip maker reported better than expected quarterly earnings and forecast higher fourth-quarter revenue as it recovers from a manufacturing setback that has pinched the supply of its new personal computer processors.
AMD is a distant second to rival Intel as a maker of microprocessors that are the brains of PCs.
"We are already seeing steady improvement day after day, week after week," recently appointed Chief Executive Rory Read told analysts on a conference call.
How should you trade it?
“I’m a believer in the chip story broadly,” says Jon Najarian.
But rather than AMD, Najarian prefers playing the space with rivals such as Intel, Broadcom and SanDisk. “I 'do' think the story plays out well through the end of the year.”
Despite the strong earnings report from Dan Berembaum, executive director at MKM Partners reitered his sell rating on the stock. Why?
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