Latest news with #RelativeStrengthIndex
Business Insider
6 hours ago
- Business
- Business Insider
Fresh AI Euphoria Boosts AMD Stock Momentum
Advanced Micro Devices (AMD) may no longer be categorized as a traditional value investment; however, it remains a compelling high-growth opportunity within the AI sector, with strong return potential over the next year. Moreover, demand for AI products is mushrooming across all industries and geographies as companies seek to leverage AI to enhance their operations. As a supplier of AI-driven technology, AMD is well-positioned to capitalize on the growing demand. Confident Investing Starts Here: As a confident shareholder, I have set a 12-month price target of approximately $175, representing an estimated 30% upside. However, Wall Street analysts are not quite as bullish despite the stock's 19% climb year-to-date. Should a $175 target be achieved, I intend to strategically reduce my position and reallocate capital toward attractively valued equities with longer-term growth prospects. From a macroeconomic standpoint, several supportive factors continue to strengthen the bullish outlook for AMD. AMD's Rapid Return Resurgence Has Begun AMD is now trading above the 50-week moving average, with the 14-week Relative Strength Index (RSI) at 65. This indicates that the stock is being driven by the bulls again, and it warrants more cautious buying behavior despite a strong return horizon ahead. Investors who are ahead of the game would have bought this stock earlier in the year. Bullish sentiment for AMD stock is understandable. AMD's forward non-GAAP earnings per share (EPS) growth rate is nearly 30%, compared to just 10% for the sector. Also, the trailing 12-month non-GAAP price-to-earnings (P/E) ratio is 37, compared to 23 for the industry. That indicates a stark difference in growth and a very fair valuation compared to the broader industry. This robust growth is primarily fueled by accelerating demand in the artificial intelligence sector, where AMD plays a key role through its involvement in data center infrastructure, particularly with its graphics and central processing units. Management has identified 2026 as a pivotal year for profit realization, following years of strong AI-related revenue expansion. While much of this anticipated growth may now be reflected in the stock's valuation, shares do not appear overvalued, making AMD an attractive candidate for a long-term buy-and-hold strategy with the potential for sustained AI-driven returns. Subtle and Stark Macro Factors Influence AMD's Returns A key near-term catalyst for AMD's continued growth is the potential for interest rate cuts by the Federal Reserve. However, I recognize that an overly aggressive easing cycle could contribute to broader market overvaluation in 2026. Should a significant bull market materialize next year—as I believe is likely—I plan to actively manage my exposure by trimming positions. I may also consider entirely exiting my AMD holdings if the stock appears to have fully priced in several years of anticipated growth. Furthermore, China remains a significant risk. While I'm confident that U.S. diplomacy will prevail over escalations in trade tensions or hot wars evolving, any conflict in Taiwan could disrupt AMD's return horizon (and that of every tech stock) for some time. That's why a cash position to protect from geopolitically induced volatility is so important right now. As TipRanks data shows, AMD's cash position is robust with ~$3 billion in operating cash flo w and ~$2 billion in free cash. However, management has also been making the business more resilient, and Taiwan Semiconductor Manufacturing Company (TSM) is diversifying aggressively into the U.S. to mitigate the risk of being threatened by China. That significantly enhances AMD's supply chain security. Hopefully, China will play a diplomatic role. We have AMD's diversification into the EU to look forward to in the near term, as well as burgeoning opportunities in the Middle East with a new $10 billion arrangement with Saudi Arabia's HUMAIN. Looking longer-term, the Global South appears to be a promising growth climate, with India likely taking center stage. Is AMD a Buy, Hold, or Sell? On Wall Street, AMD stock has a consensus Moderate Buy rating based on 24 Buys, 10 Holds, and zero Sell ratings. AMD's average stock price target is $132.17, indicating an 8% downside potential over the next 12 months. Given the macroeconomic factors and the strong demand for AI, I don't think this is the end of AMD's near-term, elite return horizon. The company has also been buying back stock aggressively, with $2.24 billion worth repurchased in the last 12 months; this significantly improves shareholder value and shows management's conscientiousness. At the same time, $2.44 billion in total debt was issued over the same period, suggesting that management is likely trying to boost short-term sentiment to improve stock returns. That's a clever strategy, if you ask me. AMD Stock Still Has Room to Run When a stock transitions from being undervalued to fairly valued, the instinct may be to exit the position. However, as Charlie Munger—one of the most respected investors of our time—has noted, even modest overvaluation is not necessarily a reason to sell shares of an exceptional company. Long-term success often comes from weathering volatility while remaining focused on the broader upward trajectory. This perspective applies well to AMD. The AI boom continues to gain momentum, and AMD remains a central player in this transformative shift. A 12-month price target of $175 appears not only reasonable but also aligned with what could be considered fair value based on the company's medium-term growth outlook.
Mint
a day ago
- Business
- Mint
Stocks to buy for short term: Axis Securities recommends Titan, Grasim shares for up to 15% upside
The Indian stock market rallied on Friday, with the benchmark indices, Sensex and Nifty 50, trading half a percent higher each, amid positive global market cues on easing geopolitical tensions in the Middle-East after the Israel-Iran ceasefire. The Nifty 50 index has surpassed the 25,600 level, and analysts expect a further rally up to 25,656 - 25,763 - 25,962 levels. However, if Nifty 50 trades below 25,458 levels, it may witness profit booking, and the index may correct up to 25,351 - 25,153 - 25,045 levels. Axis Securities has recommended two stocks to buy for short term as they expect an upside potential of up to 15% in these stocks based on technical analysis. The technical stock picks for short-term are Titan Company and Grasim Industries. Titan share price has staged a decisive breakout on the weekly chart above the falling channel pattern that had persisted since late September 2024, closing at ₹ 3,622 with a strong bullish candle. The breakout is accompanied by a notable surge in volume, indicating robust market participation and enhancing the credibility of the move, Axis Securities said. On the daily chart, Titan share price is also nearing a breakout above a cup and handle pattern, with resistance placed at ₹ 3,670. A sustained close above this level would further strengthen the bullish bias and signal the potential for continued upside. Moreover, the Relative Strength Index (RSI) has crossed above its signal line and is holding above the 50 mark, highlighting strengthening momentum, the brokerage firm added. Axis Securities recommends buying Titan shares in the range of ₹ 3,640 - ₹ 3,568, for a target price of ₹ 3,885 - ₹ 4,000. The timeframe for the trade is 3-4 weeks. Grasim share price has delivered a decisive breakout on the weekly chart, surpassing multiple resistance zones around ₹ 2,865 with a strong bullish candle. The stock is trading firmly above its key moving averages (20, 50, 100, and 200-day SMAs), reinforcing a positive bias across timeframes, according to Axis Securities. It recommends buying Grasim Industries shares in the range of ₹ 2,860 - ₹ 2,804 level. It has Grasim share price target range of ₹ 3,138 and ₹ 3,256 in the near term. The timeframe for the trade is 3-4 weeks. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
a day ago
- Business
- Economic Times
UBS initiates 'Buy' call on PNB Housing Finance, sees 17% upside on strong AUM growth and loan book shift
UBS has initiated coverage on PNB Housing Finance with a 'Buy' rating and a target price of Rs 1,300, implying a 17% upside from the previous day's closing price of Rs 1,110. ADVERTISEMENT The brokerage expects a mid-teen AUM compound annual growth rate (CAGR), driven by product diversification and deeper penetration into emerging and affordable housing segments. UBS projects a 16% AUM CAGR over FY25–27, supported by new business verticals. The share of non-prime loans is expected to rise from 25% in FY25 to 40% by FY27. UBS also noted that PNB Housing trades at a discount to peers despite strong loan growth and improving return on equity (RoE). The company's expanding distribution in mid-market segments is seen as another positive that could support incremental loan growth. The brokerage identified three key drivers of future growth. First, affordable and emerging segments are expected to account for 38% of the loan book by FY27, contributing 75% of incremental growth. Second, prime loans, while declining in share, are expected to contribute 25% to loan growth. Third, the company's entry into developer financing is likely to have a limited impact in the near term but could offer meaningful upside from FY28 enable this expansion, PNB Housing plans to increase its branch network from 356 to 500 by FY27. Also Read: Street Favourite! 10 Nifty micro-cap stocks analysts expect to rally up to 60% ADVERTISEMENT In Thursday's trade, the stock rose 2.5% to close at Rs 1,110.6. It has gained 30% over the past three months and is up 84% in the last two years. In Q4 FY25, the company's net interest income rose 19.2% year-on-year, while net profit grew 28% to Rs 567.1 crore. ADVERTISEMENT Asset quality also improved sequentially. Gross NPA declined to 1.08% from 1.19% in the previous quarter, while net NPA improved to 0.69% from 0.8%.On the technical front, the stock's Relative Strength Index (RSI) stands at 62.2, nearing overbought territory. It is trading above its 20-day, 50-day, 100-day, and 200-day simple moving averages, indicating strong underlying momentum. ADVERTISEMENT Also Read: HDB Financial Services IPO: Should you subscribe? Here's what brokerages say (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
a day ago
- Business
- Time of India
UBS initiates 'Buy' call on PNB Housing Finance, sees 17% upside on strong AUM growth and loan book shift
UBS has initiated coverage on PNB Housing Finance with a 'Buy' rating and a target price of Rs 1,300, implying a 17% upside from the previous day's closing price of Rs 1,110. The brokerage expects a mid-teen AUM compound annual growth rate (CAGR), driven by product diversification and deeper penetration into emerging and affordable housing segments. UBS projects a 16% AUM CAGR over FY25–27, supported by new business verticals. The share of non-prime loans is expected to rise from 25% in FY25 to 40% by FY27. UBS also noted that PNB Housing trades at a discount to peers despite strong loan growth and improving return on equity (RoE). The company's expanding distribution in mid-market segments is seen as another positive that could support incremental loan growth. The brokerage identified three key drivers of future growth. First, affordable and emerging segments are expected to account for 38% of the loan book by FY27, contributing 75% of incremental growth. Second, prime loans, while declining in share, are expected to contribute 25% to loan growth. Third, the company's entry into developer financing is likely to have a limited impact in the near term but could offer meaningful upside from FY28 onwards. To enable this expansion, PNB Housing plans to increase its branch network from 356 to 500 by FY27. Also Read: Street Favourite! 10 Nifty micro-cap stocks analysts expect to rally up to 60% In Thursday's trade, the stock rose 2.5% to close at Rs 1,110.6. It has gained 30% over the past three months and is up 84% in the last two years. In Q4 FY25, the company's net interest income rose 19.2% year-on-year, while net profit grew 28% to Rs 567.1 crore. Asset quality also improved sequentially. Gross NPA declined to 1.08% from 1.19% in the previous quarter, while net NPA improved to 0.69% from 0.8%. On the technical front, the stock's Relative Strength Index (RSI) stands at 62.2, nearing overbought territory. It is trading above its 20-day, 50-day, 100-day, and 200-day simple moving averages, indicating strong underlying momentum. Also Read: HDB Financial Services IPO: Should you subscribe? Here's what brokerages say
Mint
a day ago
- Business
- Mint
Stocks to buy: Rajesh Palviya of Axis Sec suggests Titan, Hindalco, Dalmia Bharat shares today
Stock market today: Domestic stock indices began the day with gains for the fourth consecutive session on Friday, buoyed by positive international signals, such as indications of a possible extension to the July 9 tariff deadline. The White House suggested that the tariff deadline might be delayed, and President Donald Trump mentioned that a "great deal" with India is on the horizon, which improved investor confidence. The Nifty 50 index commenced at 25,576.65, rising by 27.65 points or 0.11%. Similarly, the BSE Sensex also started higher at 83,774.45, increasing by 18.58 points or 0.02%. Rajesh Palviya of Axis Securities, highlighted Nifty 50's crucial support zone is located around the 25,200-25,000 levels; any minor correction around this remains a buying opportunity for traders. Palviya has recommended three stocks to to buy, hold, and accumulate. Here's what he says about the overall market. With the current close, the benchmark index has decisively surpassed the past 8-9 months' multiple resistance zone of 25,200 levels on a closing basis, indicating strong bullish sentiments. The index is firmly placed above its 20, 50, 100, and 200-day SMA, which reconfirms a bullish trend on a higher time frame. On the upside, the index is likely to extend momentum towards 25,800-26,000 levels. The crucial support zone is located around the 25,200-25,000 levels; hence, any minor correction around this remains a buying opportunity for traders. The daily strength indicator RSI has turned bearish, indicating a loss of strength. On the daily chart, the stock has confirmed a "Cup & Handle" formation at 3,660 levels on a closing basis. This breakout is accompanied by huge volumes, which signifies increased participation. The stock is sustaining above its 20, 50, 100 and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. The daily "band Bollinger" buy signal suggests increased momentum. The daily and weekly strength indicator, Relative Strength Index (RSI), is in favourable territory, indicating rising strength across all time frames. Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹ 3,850-4,000, and its downside support zone is the ₹ 3,640-3,600 levels. On the daily chart, the stock has experienced a trend reversal at the trendline breakout of 685 levels on a closing basis. The stock is sustaining above its 20, 50, 100, and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. This breakout is accompanied by huge volumes, which signifies increased participation. The daily "band Bollinger" buy signal suggests increased momentum. The daily and weekly strength indicator, Relative Strength Index (RSI), is in favourable territory, indicating rising strength across all time frames. Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹ 713-740, and its downside support zone is the ₹ 670-660 levels. On the daily and weekly charts, the stock is trending higher, forming a series of higher tops and bottoms, indicating positive bias. Recently, the stock has corrected and rebounded very sharply from the 50-day SMA (2019), which remains a crucial support zone. The stock is sustaining above its 20, 50,100, and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹ 2,350-2,430, and its downside support zone is the ₹ 2,100-2,050 levels. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
