Top 7 Trades for December

Top Stock #2: Advanced Micro Devices (AMD)

30 Dead Dividend Stocks to Avoid At All Costs

Advanced Micro Devices (AMD), a leading producer of semiconductors, entered into an agreement to drop ongoing legal disputes with Intel (INTC), start a new five-year cross-license on x86 technology, and permit Global Foundries, AMD’s spin-off of its semiconductor manufacturing business, to exist as an independent entity, which will allow AMD to transform itself into a fabless semi company. INTC will pay AMD $1.25 billion. Credit Suisse said, “We view the settlement positively for both INTC (legal risk reduced) and AMD (stronger balance sheet).”

Semiconductor stocks have broken into a bull market, and AMD’s recent triple-top breakout follows a major bottom punctuated by a gold cross in May. That, coupled with the high-volume breakaway gap, is a powerful signal. My trading target is $9.50 to $10, but longer-term investors may want to hold the given the favorable fundamental outlook mentioned above.

Next: Top Stock #3