Ask a Fool: Is This Red-Hot Tech Stock a Buy on the Pullback?

Since the start of the year, shares of AMD (NYSE: AMD  ) have been soaring. And although its shares are still down meaningfully over longer horizons, it finally seems that investors have given the struggling tech giant a new lease on life, until recently. Last month, AMD's shares took an abrupt turn downward, presenting investors with a puzzling situation. Going forward, the real question becomes whether this was only a momentary pause in its march upward or a sign that this turnaround has run its course. In the following video, we dig deeper into the matter in the most recent edition of our "Ask a Fool" series.

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  • Report this Comment On June 17, 2013, at 1:02 AM, rav55 wrote:

    The analysis is flawed. AMD has not been at "a tear". It has simply recovered from it aggressive shorts.

    AMD was driven down in price in an attempt to short the stock into insolvency.

    Anyone who tracked the industry "knew" that AMD had a hole card; the console gaming wins. Most folks on the street didn't research this and were caught at the first short squeeze to the present valuation. Since the high of 4.38 on May 15 AMD dropped to 3.83 once notoriously following a blatant attempt to drive the stock down by James Covello, analyst at financial Goldman Sachs.AMD tested 3.90 or so several times and slightly lower intraday, The stock immediately recovered. To it's present range of $4.00 despite some fairly aggressive shorting.

    SeaMicro also promises some market share gains in servers.

    The only conclusion can be the AMD is well supported at $4.00. If you are long with AMD then accumulate at these levels and hold it for the pay-off when the console income and the ARM license will impact the bottom line.

    If are short term then buy in on the dip and sell and be happy with 8%.

    Past performance only counts when your marrying a reformed hooker. Not when you are investing with a company that has rewritten it's business plan with Rory Read.

    AMD is a completely new company, especially so when it releases it's ARM/Radeon APU. That will go head to head with nVidia's Tegra.

    The PC market has changed and AMD is changing with it.

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