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

Advanced Micro Devices (NASDAQ:AMD [https://www.chartmill.com/stock/quote/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.

[AMD Stock Chart]

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 [https://www.chartmill.com/stock/quote/AMD/technical-analysis] 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:

* EARNINGS SPEED: Shows the company is gaining market share and improving operations.
* TECHNICAL STRENGTH: Confirms institutional interest and trend stability.
* 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 [https://www.chartmill.com/stock/stock-screener?sid=719&f=v1_50b500,atrpct_a_1,sl_ta_7_X,sl_se_7_X,p_pg20,exch_us,sl_ratingHgm_6_X&s=se&v=3] 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._