#2 - Advanced Micro Devices (NASDAQ:AMD)
For the first half of the year, Advanced Micro Devices (NASDAQ:AMD) was trading in a tight range. But since July 1, the stock is up nearly 65%. This is a case of AMD benefiting from another chipmaker’s struggles. And the importance of having the right product at the right time.
Intel (NASDAQ:INTC) won’t be releasing its 7 nanometer (nm) chips for six months. That benefits AMD because it already produces the chips. In fact, the company’s Ryzen CPUs dominate the 7nm market. But Advanced Micro Devices is not resting on its laurels. It is planning to introduce the next generation 7nm chip, Zen 3, for the consumer market late in 2020.
And Advanced Micro Devices had a comfortable beat on both the top and bottom lines when it reported earnings on July 28. But AMD is not without its challenges. The most significant one may come from China. The country may extend its prohibition of foreign components and software in its computers to include server chips. This represented 26% of the company’s revenue in 2018.
However, with the advances the company is making in other areas, analysts are still bullish on the stock, and recent price targets suggest it may have significant room to grow.
About Advanced Micro Devices
Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.
Read More - Current Price
- $164.47
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 28 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $185.26 (12.6% Upside)
