AMD Has Been Obliterated

The semiconductor space has been absolutely crushed.
Shares are down 66% from highs, and more pain could be on the horizon.Recent news has been bearish, including restrictions on sales to China.

As contrarians, we view all of the sentiment being universally negative as a chance to take the other side of the trade, even with fundamental pressures leading to a horrific Q3 preliminary report.

If you have not been paying attention, the semiconductor stock AMD $Advanced Micro Devices (AMD.US)$ $NVIDIA (NVDA.US)$ has seen its price be sliced by 2/3rds since reaching all-time highs. The sector has been horrific. Sentiment on these stocks has absolutely cratered. It is so negative that as a contrarian firm, we think the stock is a speculative buy. That is just what we do. We like to find beaten down stocks in unloved sectors, and profit from their rebound when sentiment and operational conditions improve. Both sentiment and operational condition are poor. But is this priced in down some 67% from highs? We think largely the answer is yes.