'Trading Nation' Traders Weigh In On AMD

On CNBC's "Trading Nation," Mark Tepper of Strategic Wealth Partners revealed that he sees the weakness in Advanced Micro Devices, Inc. AMD as a buying opportunity. The stock is trading lower on the news of the Xilinx, Inc. XLNX acquisition, but Tepper is not concerned. He said that shareholders are being diluted for a really good reason.

He bought the stock at $40, sold some at $60 and he is comfortable owning it at its current price. He bought it because of its strength in the data center, PCs and gaming. He is positive about the gaming segment because there are two new gaming consoles coming out and AMD's chips are in them. He also sees synergies from the Xilinx acquisition because it bolsters AMD's data center footprint and it gets it into the booming 5G cycle.

See Also: How Large Option Traders Are Playing AMD Following Xilinx Buyout, Q3 Earnings

JC O'Hara of MKM Partners compared the deal to the Intel Corporation's INTC purchase of Altera. The deal was announced in June 2015 and there was a three months correction of nearly 25% in Intel, immediately after the announcement, said O'Hara. It took time for the market to re-price Intel based on the new information.

In August 2015, the stock was able to find buyers and resume its uptrend. O'Hara would give some time to AMD before trends can fully develop.