Analyst Sean McCloskey: "I canât say enough good things about this company." Analyst Sean McCloskey: "I can’t say enough good things about this company." [Energy and Capital logo] Options Action Alert — This Chipmaker Is Firing on All Circuits [Sean McCloskey Photo] By [Sean McCloskey](
Written Oct 28, 2021 It may seem like a hyperbole, but if you want to invest in the next chipmaker set to rise to unprecedented heights like its counterpart NVIDIA (NASDAQ: NVDA) has over the past five years, look no further than Advanced Micro Devices (NASDAQ: AMD). I can’t say enough good things about this company. Originally, I got my first followers into this company in 2018. It’s been an incredible journey since then with profits galore. And if you’ve followed along with my alerts this year, you had the chance to invest in the company back in June as well. Hopefully you acted on my advice, because that position is up an awesome 51% as of the time of this writing, and I firmly believe we’re just getting started. The six-month chart is incredible! [AMD Six Month 2021] My long-term, 10-year price target for AMD right now is $400. Clearly, I’m bullish on the stock, and for good reason. #1 Investor Issues Warning: "Move Your Money Before November 2nd” Chris Rowe says there’s a huge stock market event looming — and he’s revealing his #1 pick for free. [Details here.]( AMD Crushes Wall Street Expectations A big reason for AMD’s recent surge is tied directly to earnings season. Generally speaking, when a big-name company like AMD is set to report and expectations for an earnings beat are high, we see a strong run-up in share value. Not only did AMD beat Wall Street expectations but it crushed them — which says to me that this company not only has the technology people want (sales are booming) but it's also managing the supply chain issues better than its competitors. Highlights from the call include: - Earnings per share (EPS) came in at $0.73, beating estimates of $0.67.
- Revenue was reported at $4.3 billion, beating the Street’s estimates of $4.12 billion.
- Revenue grew 54% year over year and 12% quarter over quarter.
- The computing and graphics segment's revenue was up 44% year over year and 7% quarter over quarter.
- The enterprise, embedded, and semi-custom segment's revenue was up 69% year over year and 20% quarter over quarter.
- Gross profit grew 70% year over year to $2.08 billion. Moreover, the company raised full-year 2021 revenue guidance to growth of approximately 65%, up from 60% previously. With a high-priced holiday season mired with supply chain concerns, I think AMD will capitalize on the huge opportunity to steal more market share and keep the momentum in share value going. What we need is savvy dip buyers to step in after traders “sold the news” in early trading Wednesday. The 5G Revolution Has a Kick-Off Date December 5, 2021. That’s when it all goes down. The world that comes after won’t be the same, and it all goes back to [a single technological innovation.]( Without it, what you’ve come to know as 5G could never exist for real. With it, a next-generation internet, with unprecedented reach and connectivity, can become a reality. Right now, as you read this, a small Arizona-based tech company holds the key to unleashing the 5G revolution. Get the story, the details, and projections on where this stock could be in a year’s time [right here](... Here’s the Trade Since some of you may already have a stake in AMD, let’s turn to the options market for our next trade. Action to Take: Initiate a “buy to open” order on one or more Advanced Micro Devices (NASDAQ: AMD) November 2021 $128 call(s) that expire on November 12, 2021. As I am writing, the price is $3.73 per share, or $373 total per contract. [AMD Option Chain] ***Keep in mind: You must be approved for options margin trading before you can initiate this trade. Call your broker; they will be happy to assist you.*** Additionally, once we’re in this trade, you’ll need to contact your broker and request to have the “expiration parameters” lifted or removed from this trade. Our goal for this trade is to sell the contract as we near the expiration date, ideally at a price of around $6–$7 for roughly a 100% gain. ***Remember: This is an active management strategy, and you will want to check your email daily for updates and guidance or visit our website.*** Conversely, if the underlying AMD stock starts to slide away from our strike price of $128, we will actively manage this risk and sell before the option expires to minimize our losses. To recap, here’s today’s option trade: Initiate a “buy to open” order on one or more Advanced Micro Devices (NASDAQ: AMD) November 2021 $128 call(s) that expire on November 12, 2021: - Strike Price = $128
- Expiration date = November 12, 2021
- Premium = $373
- Maximum Loss = $373 Since this option expires in about four weeks, be sure to check back in every day for updates and guidance. We’ll talk again soon. To your wealth, Sean McCloskey
Editor, Energy and Capital [[follow basic]@TheRL_McCloskey on Twitter]( --------------------------------------------------------------- The Bigger Issue Behind the Microchip Shortage It’s no secret that microchips are in short supply these days thanks to the pandemic… But what most people don’t realize is that their performance stalled out more than four years ago. See, the silicon-based chips that are probably found in most of your devices can’t get any faster than they are today because their capacity is nearing physical limits. We need a new growth spurt to meet the demand for data-hungry AI technology, 5G networks and equipment, and self-driving cars. In fact, Google engineer Jeff Dean said that microchips must become 1 million times more powerful to meet upcoming demands. This lack of progress has even caused Apple to replace old Intel chips with its own. And many more semiconductor companies like Intel could be facing ruin very soon… But one little-known company is expected to be the big winner, thanks to what I call “God Chip” technology. This new microchip is set to blow silicon-based technology clean out of the water! Because not only is it 1,000x more powerful than silicon chips… It’s also 200x stronger than steel. And the best part? [This small firm could potentially hand you 10x your money if you act now.]( Browse Our Archives [Trump’s SPAC Deal With Digital World Acquisition Corp. (NASDAQ: DWAC) Will Be a Giant Failure](
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