AMD shares gain the most in four months on Monday, company forms a partnership with Intel to challenge Nvidia

According to a report by Reuters on Monday, a partnership has been formed between rivals Advanced Micro Devices and Intel, aimed to help both companies to compete with Nvidia Corp.

Shares of Advanced Micro Devices Inc closed higher for a third consecutive trading session on Monday. It has been the steepest daily surge since July 5th. The stock went up 7.28% ($0.810) to $11.930, after touching an intraday high at $12.067, or a price level not seen since October 27th ($12.190).

In the week ended on November 5th the shares of the global semiconductor company lost 6.08% of their market value compared to a week ago, which marked a third consecutive period of decrease.

However, due to yesterdays gain, the stock has extended its advance to 8.60% so far during the current month, following a 13.84% slump in October. The latter has been a third consecutive monthly loss and also the largest one since May.

For the entire past year, shares of Advanced Micro Devices Inc soared 295.12%. The stock has gained another 5.20% so far in 2017.

The partnership will witness the integration of AMDs semi-custom graphics chip into Intel Corps new multi-chip processor package.

According to a statement by AMD, the new product will combine into one package an Intel core processor with AMDs semi-custom radeon graphic chip and second-generation high bandwidth memory.

Last month AMD reported earnings per share of $0.10 during the third quarter on revenue of $1.64 billion, both of which exceeded the median forecast by analysts.

Meanwhile, a consensus of estimates points to earnings of $0.04 per share during the current quarter on revenue of $1.40 billion. AMD is expected to release the official fourth-quarter results on January 23rd 2018.

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding AMD’s stock price, have a median target of $13.00, with a high estimate of $22.00 and a low estimate of $5.00. The median estimate is an 8.97% surge compared to the closing price of $11.93 on November 6th.

The same media also reported that 17 out of 32 surveyed investment analysts had rated AMD’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 5 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the AMD stock are presented as follows:

R1 – $11.968
R2 – $12.006
R3 (Range Resistance – Sell) – $12.045
R4 (Long Breakout) – $12.159
R5 (Breakout Target 1) – $12.293
R6 (Breakout Target 2) – $12.357

S1 – $11.892
S2 – $11.854
S3 (Range Support – Buy) – $11.815
S4 (Short Breakout) – $11.701
S5 (Breakout Target 1) – $11.567
S6 (Breakout Target 2) – $11.503

By using the traditional method of calculation, the weekly levels of importance for Advanced Micro Devices Inc (AMD) are presented as follows:

Central Pivot Point – $11.063
R1 – $11.477
R2 – $11.833
R3 – $12.247
R4 – $12.660

S1 – $10.707
S2 – $10.293
S3 – $9.937
S4 – $9.580