AMD falls in premarket after $4.75 billion notes offering
Advanced Micro Devices (NASDAQ: AMD) is trading lower by more than 3% in Tuesday’s premarket after closing a $4.75 billion senior notes offering.
Advanced Micro Devices (NASDAQ: AMD ) stock is trading lower by more than 3% in Tuesday’s premarket session as investors pull back from high-beta technology stocks. 42%. 75 billion senior notes offering. 5% notes due 2036.
AMD plans to use the net proceeds for general corporate purposes, which may include debt repayment. 27% over the past 12 months. As a result, AMD may be more vulnerable to profit-taking when investors reduce exposure to growth stocks. Meanwhile, weaker index futures are putting additional pressure on semiconductor stocks.
High-beta names can see sharper swings during broader risk-off sessions. Technical Analysis AMD remains in a longer-term uptrend despite the recent weakness. 93. 57.
However, the short-term trend has weakened. 06. The 20-day SMA is also below the 50-day SMA. That signals weaker short-term momentum despite the broader uptrend.
40. That puts the stock in neutral territory, with neither buyers nor sellers showing extreme momentum. Key resistance sits near $530, while support is around $460. 1, reflecting a premium valuation.
39. Argus Research maintained a Buy rating and raised its price forecast to $625 on Aug. 6. Rosenblatt maintained a Buy rating and lifted its forecast to $700 the same day.
JPMorgan maintained a Neutral rating and raised its forecast to $550 on Aug. 5. Edge Rankings AMD scores strongly on several Edge measures. 81.
38. The combination points to strong momentum, growth and quality but a stretched valuation. That profile can leave the stock more exposed when investors move away from higher-priced growth stocks. 10% weighting in the iShares Semiconductor ETF (NASDAQ: SOXX ).
87% of the ARK Autonomous Technology & Robotics ETF (BATS: ARKQ ). Because AMD has significant weightings in these funds, ETF inflows and outflows can contribute to buying or selling pressure in the stock. 78 in Tuesday’s premarket trading, according to Pro data. Image via Shutterstock Read Also: China Slashes US Treasury Holdings to 18-Year Low as 30-Year Treasury Yield Hits 19-Year High