Should you buy Advanced Micro Devices (AMD)?

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The previous trading day AMD closed at just above $95, which is more than two times increase from the lowest price of the company this year. Hence, the company grows more than indexes i.e. more than the Dow Jones and the Nasdaq.

Currently, AMD stocks have an expected P / E ratio of about 50. Although this may seem high, analysts forecast revenue growth of about 72% this year and 51% in 2021. At least for now, AMD shares can be worth their high market value.

Today, the shares of the chip manufacturer rose by 2.61% over the last month. At the same time, the computer and technology industries grew by 4.2%, while the index rose by 3.84%.

Fundamental Analysis of AMD Stock

Next-generation game consoles released by Microsoft and Sony are expected to support this growth. Continuous innovations in the graphics processor (GPU) and central processing unit (CPU) will also help maintain its competitive advantage over NVIDIA and Intel.

As AMD’s next revenue issue approaches, investors hope to gain strength with AMD. The company expects earnings per share of $ 0.47 US, which is 45% more than the same period last year. At the same time, the estimated net sales were at $ 3.01 billion that is 40% more than the same period last year.

Although AMD’s growth prospects are very bright, investors should be aware that NVIDIA insisted on its problems and regained the market share that AMD lost. The reaction could also be a problem in the battle between AMD and Intel. Despite all Intel’s concerns, it is still the largest chipmaker. AMD stock at https://www.webull.com/quote/nasdaq-amd earned more than $ 1.9 billion in revenue in the last quarter. During the same period, Intel earned $ 19.7 billion. After Intel finally releases the 7-nanometer chip, it can make up for most of AMD’s lost business.

It is also important to note the latest analysts’ assessments of AMD. These changes aid to prove the varying environment of short-term industry trends. Hence, researchers can review the positive assessment to express our optimism about the company’s business prospects. The company relies on Taiwan Semiconductor to produce chips. Recently, even Intel, which produces most of its own chips, has turned to outsource. However, AMD’s lack of production control can be a nasty problem in the case of TSMC with multiple customers, especially if the larger Intel competes with AMD for the same production resources.

When Soo became CEO, she hoped that AMD would succeed in the high-performance computing market, including data centers. If you want to know more information relating to releases of AMD, you can check at https://www.webull.com/releases/nasdaq-amd.

As AMD’s next revenue issue approaches, investors hope to gain strength with AMD. The company expects earnings per share of $ 0.47 US, which is 45% more than the same period last year. At the same time, the estimated net sales were at $ 3.01 billion that is 40% more than the same period last year.

Today, the shares of the chip manufacturer rose by 2.61% over the last month. At the same time, the computer and technology industries grew by 4.2%, while the index rose by 3.84%.