Advanced Micro Devices (NASDAQ:AMD) Emerges as a High-Growth Momentum Powerhouse

Advanced Micro Devices (NASDAQ:AMD) has become a strong option for investors focused on high-growth momentum, blending solid fundamental growth with a positive technical outlook. The stock was selected using a screen that looks for securities with a High Growth Momentum (HGM) Rating above 4, a Technical Rating (TA) above 7, and a Setup Rating above 7. This approach matches strategies such as CANSLIM and Minervini, which highlight earnings momentum, relative strength, and consolidation breakouts as critical factors for strong performance.

Why AMD Meets the High Growth Momentum Standards

The HGM Rating of 6 reflects AMD’s steady growth path and earnings momentum, backed by these fundamentals:

• EPS Growth (TTM): 24.1% year-over-year, with recent quarterly growth rates increasing in earlier quarters (54.8% in Q-1, 41.6% in Q-2).
• Revenue Growth (TTM): 27.2% year-over-year, with consistent revenue estimate beats (4/4 last quarters, avg. beat of 1.82%).
• Free Cash Flow Increase: FCF growth of 116.6% over the past year indicates strong operational efficiency.
• Improving Profit Margins: Quarterly margins rose from 6.3% (Q-2) to 11.3% (Q-3), though recent margin pressure (-30.4% YoY EPS decline last quarter) needs attention.

These metrics fit the HGM Rating’s emphasis on growth speed, surprises, and revisions. While AMD’s recent EPS slowdown prevented a higher score, its long-term growth potential and upward revenue revisions (+1.4% for next year) keep it in the running.

Technical Strength and Setup Quality

AMD’s Technical Rating of 9 and Setup Rating of 7 highlight its bullish structure and consolidation potential:

• Trend Health: Both short- and long-term trends are positive, with the stock trading above key moving averages (20-day: $168.08, 50-day: $146.20).
• Relative Strength: Outperforms 85% of semiconductor peers, with a 12-month gain of +17.8% despite recent ups and downs.
• Consolidation Pattern: Prices have fluctuated between $149.34 and $182.50 over the past month, with a clear support zone at $168.08,$169.42. A breakout above resistance at $174.96 could signal further gains.

The full technical report notes AMD’s high liquidity (avg. volume 58M shares/day) and labels the current setup as a “decent” chance for breakout traders, suggesting a possible entry at $174.97 with a stop-loss at $168.07.

Why These Standards Matter

High-growth momentum strategies focus on stocks with:

1. Earnings Speed: Shows the company is gaining market share and improving operations.
2. Technical Strength: Confirms institutional interest and trend stability.
3. Consolidation Breakouts: Offers lower-risk entry points during trend pauses.

AMD’s mix of growth durability (despite recent EPS weakness) and technical consolidation makes it a choice for investors eyeing the semiconductor sector’s cyclical rebound, especially in AI and data center markets.

Find More High-Growth Momentum Opportunities

For investors searching for similar options, our High Growth Momentum Breakout Screen updates daily with stocks meeting these standards.

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Disclaimer: This analysis is not investment advice. Always conduct your own due diligence and consider risk management strategies before trading.