Advanced Micro Devices (AMD): Analysts Weigh In (Again...)

More analysts weighing in dominates the latest news about Advanced Micro Devices, Inc (NYSE: AMD). I should add that AMD has been in our SmallCap Network Elite Opportunity (SCN EO) portfolio since last summer and we are down around 5.7% as of today due to the bears coming out after the last two earnings reports. Nevertheless, it's a mixed picture as there has been both good and bad news along with bullish and bearish analysts about the stock lately. Just consider the following:

Oppenheimer Downgrades AMD From Perform to Underperform. On Monday, Oppenheimer downgraded Advanced Micro Devices from Perform to Underperform, saying:

"Despite notable near-term strength in gaming console sales and signs of stabilization in the PC market, we believe structural challenges are mounting. AMD PC/graphics sales are likely to continue falling faster than PC units as INTC leverages its vast manufacturing/cost advantage to aggressively and profitably capture low-end share. Meanwhile, NVDA's competitive graphics position remains as dominant as ever. GM are likely to structurally decline going forward as management chases low-margin gaming revenue while being forced to compete aggressively in the core PC segment. We are tweaking our sales estimates higher, but lowering our bottom-line assumptions. We see little valuation support and would be sellers here."

The downgrade did push AMD shares down nearly 3%, but the stock bounced back around 1.67% on Tuesday and analyst opinions remain all over the place as Yahoo! Finance lists 6 Strong Buys, 2 Buys, 15 Holds and 6 Underperforms. 

Zacks Maintains a Hold. Zacks recently reiterated its "neutral" rating on Advanced Micro Devices and a $3.75 price target, adding:

"Its third quarter earnings were better than the Zacks Consensus Estimate, driven by solid execution and cost control. The company's new products, strength in graphics, increased game console wins, advancements in 32nm manufacturing and position in China remain positives. But at the same time, Intel remains a strong competitor with superior strategy, technological prowess and the clout that may be expected of the market leader. While AMD may be able to carve out its own niche, its relatively low cash position and significant leverage indicate that it is could be running out of time." 

Cramer is Still a Believer. For what his opinion is worth, CNBC's Mad Money host Jim Cramer recently commented in a Lightening Round about AMD saying: "They had a bad quarter, but I still believe in it." Bullish Call Activity. Earlier this month, Schaeffer's Options Center noted that approximately 17,000 contracts traded in one day on AMD with less than 100 being puts. In fact, more than 10,200 calls traded at the January 2014 4 strike – meaning someone or some someones are counting on shares hitting the $4 level by then – something that has not happened since October 17th or the day before earnings came out and sent shares into a bearish trend. Share Performance. Advanced Micro Devices is up 52.1% since the start of the year and up 60.1% over the past five years, but it has been an up and down ride for investors and traders alike:

Moreover, the most recent technical chart as some bearish trend lines to it:

Nevertheless and at the very least, investors and traders alike should keep watching the stocks as where there is volatility, there are usually profits to be made.

SmallCap Network Elite Opportunity (SCN EO) has an open position in AMD. To find out what other open positions SCN EO currently has, and to learn why so many traders and investors are relying on this premium subscription service, click here to find out more.