We're Watching Closely as Bullpen Name Faces Retreat

Advanced Micro Devices AMD reported its recent quarter on Tuesday night and by all accounts, it was "less than feared."

The company delivered a beat by a penny versus consensus (.69 versus the .68 expected) and handily beat revenue forecasts. The shares jumped higher in the after hours but, without pouring cold water on the report, the stock is just now back to levels it traded at last week when AMD tumbled badly. If the selling is over, then perhaps an uptrend can get underway. But we need more time to figure that out. The chart shows the stock is still in a downtrend.

We have AMD in the bullpen currently and are watching the stock closely. If there is a retreat into the lower 140s, it may afford us an opportunity to add shares. Several analysts slightly raised their price target on AMD. The quarter end showed robust demand for AI chips (MI300) as CEO Lisa Su raised guidance for the second half of the year. This bodes well for TheStreet Pro name NVIDIA NVDA, which is in the midst of a correction.

Mastercard MA reported earnings on Wednesday morning. Following last week's disaster from Visa, we expected to see a muted response. The company missed forecasts on the bottom line by a penny, revenue gained however, as they saw heavy consumer spending. Mastercard sees revenue growing in the low double-digits this year, still very robust. With a strong GDP figure reported on July 25, 2024, (up 2.8% first estimate) the consumer is still alive and well. Jobs remains plentiful, even if the economy is slowing down.

We see this report as important for the trend in Mastercard to move bullish — above the $460 level for a time will get that ship turned.

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At the time of publication, TheStreet Pro Portfolio was long NVDA and MA.