This AMD Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.
Summary
AMD faced challenges in the first nine months of 2023, with lower sales of key processors and increased R&D investment, partially offset by positive contributions from Radeon GPU sales, product mix adjustments, and the inclusion of Xilinx.
AMD's strategic focus on high-performance and adaptive computing technology, reflected in a $4.4 billion investment in R&D for the nine months of 2023.
AMD’s Q3 2023 highlighted a strong cash position of $5.8 billion for future stock buyback and a robust industry outperformance.
DCF valued AMD at $143, a 6% upside potential compared to $135.47 on December 20, 2023.
AMD’s Ryzen Close Up. By Fritzchens Fritz from Berlin (via WikiMediaCommons/Public Domain)
Advanced Micro Devices Inc. (AMD) went from a company that was once in fair amount of trouble, to a competitor against giants Nvidia and Intel. Shares have been seeing a continuous rise, reaching a 12-year high. The stock rose 200% this past month alone. AMD’s Ryzen microprocessors can take a fair amount of credit for this success. That along with quality leadership with Lisa Su as CEO. Ryzen outperforms competitor Intel’s comparable chips, and at a lower price. The same outperformance can be seen for EPYC against the likes of Intel’s Xeon, and notably so. Since AMD’s launch of EPYC processors last year, they have gradually gained share within the server market space. They are also set to launch next-generation 7 nanometer products soon, well ahead of their competitors which aren’t scheduled to drop until 2020. This gives AMD a window to take a hold of even more market share in the coming year. Their avoidance of certain security issues that have hit competitors in recent moths may have been yet another factor in their recent uprise. Ryzen and EPYC, which brought this company back to life, are getting a ramp, which should be a good sign to shareholders. The company is optimistic about a 20% share in the desktop market, up to 40% in 2019, driven by Ryzen chips. It is also notable that AMD’s market is growing, and this means though it may have healthy competitors, their presentation of solid product may be gaining them a more solidified position in the market. They supply rapidly growing markets like smartphones, data-centers, AI, AR/VR, self-driving, automation, etc. The total addressable market (TAM) took a massive jump from $18.5 billion to $22.5 billion, which only helps a company like AMD grow, as long as they keep delivering great product.
AMD saw an impressive second quarter, with a revenue of $1.76 billion, a 53% rise year-over-year. It also reported its highest quarterly net income in seven years. Earnings per Share (EPS) increased by 700% from the previous-year quarter, and 50% from Q1 2018.
On September 18, Mizuho increases its AMD (NASDAQ:AMD) price target from $20 to $36
On the next day, Morgan Stanley reiterates an Underweight rating on AMD (NASDAQ:AMD) but increases the price target from $11 to $28
On September 20, Stifel increases its AMD (NASDAQ:AMD) price target from $21 to $38 citing strong demand for the company’s new products
Two day ago Jefferies reiterates its Buy rating and raises its AMD (NASDAQ:AMD) price target from $30 to $36.
This article was written by David Shabotinsky, a Financial Analyst at I Know First, and enrolled at the undergraduate Finance program at the Interdisciplinary Center, Herzliya.
AMD Stock Forecast
Summary:
Overview on AMDs performance throughout the past few quarters
New Radeon Chips may help AMD further capture market share in the GPU market
Improvement in key financial risk measurements
How AI is being implemented by businesses to increase operational efficiency
I Know First's AI-based algorithm maints a bullish forecast on AMD shares
Naman Shukla is an Analyst at I Know First. He writes and invests in the stock market. Ranked in the top 8 percentile in TipRanks.com. Featured on SeekingAlpha.com, GuruFocus.com, Valuewalk.com among others.
AMD Stock Prediction: AMD’s Rally Is Just Getting Started
Summary
AMD’s new GPUs have paved the way for the company’s turnaround.
Lower price points and high efficiency have contributed to the success of the Polaris architecture-based GPUs.
AMD can benefit further if it launches a successful product for the high-end market.
On July 29th, 2015, The I Know First algorithm gave a bullish signal of 8.69 for the ticker AMD (Advanced Micro Devices), which had a strong predictability indicator of 0.29. In accordance with the algorithm’s prediction, Advanced Micro Devices spiked 31.74% on trading day July 29th. A day prior to the rising stock price, I Know First published a compelling article, titled AMD Stock Outlook: Inevitable Rebound, which highlighted a potential rise in stock price.
I Know First-Daily Market Forecast, does not provide personal investment or financial advice to individuals, or act as personal financial, legal, or institutional investment advisors, or individually advocate the purchase or sale of any security or investment or the use of any particular financial strategy. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor.
