Two weeks ago I published an article with a rundown on AMD and how the Q2 results would pan out here. This article will be a summary of the previous article with predictions for tomorrow and the coming week.
The long and short of it is: hold now and through the Q2 results, be prepared to sell soon after with the intention to buy in the low caused by RX VEGA release.
First off lets have a look at Q1 results:
AMD were down from Q4 2016 but up from the same period last year. To be expected as Ryzen sales wouldn’t have played a roll in this
Next i talked about graphics cards. In summary VEGA is good but nothing to be over the moon about. Polaris on the other hand have done very well over the past month or two thanks to the popularity of cryptocurrency mining.
Finally i discussed AMDs New range of processors. While VEGA hasn’t turned many heads Ryzen has been selling very well. Threadripper is EPYC and EPYC will see AMDs server market share Ryzen.
Q2 results should include the healthy sales of Ryzen over the last couple of months but won’t include much of Ryzen sold in pre-builts. These sales have been strong and so Q2 results will hopefully look good resulting in a raise in stock value. What comes next, however, is VEGA. AMDs radio silence regarding a product they are releasing in 6 days is not good news. It smells like bulldozers release and considering how upfront they have been about CPU benchmarks and performance it suggests they know that VEGA is not a winner.
At this stage investors should expect VEGA release to be coupled with a drop in stock value as it does not beat the competition performance. Q2 results, however, could see the shares rise sharply but briefly. Selling after Q2 results and buying after VEGA release may be the smartest move here.