AMD share price rallies

No Shorty Long anymore

A report from financial analysts Seeking Alpha has issued guidance on the share price of Advanced Micro Devices (AMD) and said the company’s outlook is quite bright.

The report said that only 11 months back AMD was one of the most shorted stocks in the USA largely as a result of falling revenues and losses.

But, said Bill Maurer at Seeking Alpha, all that has completely changed now. Analysts think that AMD’s share price is currently overvalued.

It all hangs on how well AMD performs when it releases its earnings next week.

The introduction of the RX 480 was supposed to help out on revenues but there’s a question mark over how well it’s contributed to the bottom line.

On the bright side, the arrangement it had with Nantong Microelectronics terminated in the quarter and that ended up meaning a net cash bonus of over $ 320 million.

The share price currently stands at over $ 5. AMD’s biggest phone the processors based on Zen architecture are promised to start shipping later this year. This should have an effect on the stock value.