ADVANCED MICRO DEVICES (NASDAQ:AMD) Combines High Growth Momentum with Bullish Technical Setup

For investors looking to join strong earnings momentum with favorable chart patterns, a multi-layered screening method can be very useful. One way is to sort for stocks that show both fundamental growth traits and technical breakout possibility. Specifically, this can be done by searching for securities with a high ChartMill High Growth Momentum Rating (HGM), which notes short-term earnings acceleration and positive revisions, together with solid ChartMill Technical and Setup Ratings, which find stocks in clear uptrends that are forming into usable entry points. This combination tries to find companies where strong fundamental drivers are matching with helpful price action, possibly marking a continuation of the uptrend.

ADVANCED MICRO DEVICES (NASDAQ:AMD) appears as a candidate that fits these joined conditions, offering a case for high growth momentum investors to review.

High Growth Momentum Fundamentals

The center of the momentum plan rests in finding companies with speeding business performance. AMD's fundamental profile displays several positive points that add to its good HGM Rating of 6.

• Strong Revenue Path: The company has shown solid top-line growth, with a 31.8% rise in revenue over the past twelve months (TTM). Recent three-month sales growth stays notable, with the last reported quarter showing a 35.6% year-over-year increase.
• Earnings Growth and Profit Improvement: AMD's earnings per share (EPS) grew 24.3% over the past TTM year. Maybe more significant, the company is displaying clear margin improvement. The profit margin in the newest quarter was 13.4%, a large gain from 6.3% just three quarters before. This pattern of growing profitability is a main idea of high-growth momentum investing, as it shows operational leverage and pricing strength.
• Positive Analyst Outlook: Forward estimates are rising, a needed part for momentum. Analyst changes for both next year's EPS and revenue have been positive over the last three months, rising by 1.8% and 3.0%, in that order. This points to increasing belief in the company's short-term future.
• Cash Flow Creation: The company's free cash flow per share has risen quickly, showing growth of over 312% in the past year. This notable cash creation gives financial room and supports the quality of the earnings.

While the EPS growth in the newest quarter slowed from the very high rate of the earlier quarter, the full view stays one of notable, profitable growth backed by positive estimate changes, exactly the profile the HGM Rating is made to point out.

Technical Health and Setup Condition

A notable fundamental story is most effective when joined with helpful price action. According to the ChartMill Technical Report for AMD, the stock gets a Technical Rating of 7 and a Setup Rating of 7. This shows a technically healthy stock that is also creating a possible entry pattern.

• Long-Term Trend and Relative Performance: The long-term trend for AMD is scored as positive, and the stock does better than 93% of the whole market over the past year. It also places highly inside its competitive Semiconductors & Semiconductor Equipment industry, doing better than 86% of its peers. This confirms its place as a market leader.
• Consolidation and Lowered Volatility: The report states that the stock has been forming a range over the past month with lowered volatility. This type of price action, after a prior rise, often prepares for a new move higher. The Setup Rating specially measures this consolidation, searching for patterns where a clear support area exists below the current price.
• Clear Support and Resistance: The technical review finds a clear resistance level near $221.63. A clear move above this level could mark the restart of the uptrend. On the other hand, a strong support area exists between about $210.65 and $214.45, made by key moving averages and trendlines, giving a logical zone for a protective stop-loss order.

This technical setting is important for the plan. The high Technical Rating confirms the stock is in a sound uptrend, while the Setup Rating implies it is not stretched but instead pausing, giving a measured risk/reward chance for entry on a breakout.

A Joining Chance

For investors using a high growth momentum plan, AMD offers a case where fundamental and technical reviews join. The company is producing the type of sales growth, margin improvement, and positive estimate changes that momentum screens look for. At the same time, its chart displays the traits of a leader pausing inside a longer-term uptrend, giving a clear technical setup. This match is the goal of joining these specific ratings: to find companies where business momentum may be set to turn into continued price momentum.

Interested in finding other stocks that match this profile of high growth momentum and technical breakout setups? You can run the screen yourself using this pre-configured stock screener link.

---

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and reflects the author's interpretation. Investors should conduct their own due diligence and consider their individual financial circumstances and risk tolerance before making any investment decisions. Past performance is not indicative of future results.