#1 - Advanced Micro Devices (NASDAQ:AMD)
Advanced Micro Devices Inc. (NASDAQ: AMD) is a leading manufacturer of semiconductor chips. The company competes with market darling Nvidia Corp. (NASDAQ: NVDA). However, that may not be the most helpful way to think about getting involved with AMD stock.
Currently, Nvidia dominates the data center market with over 85% of the market share. That’s a huge first-mover advantage that will be tough to overcome. However, the opportunity for Advanced Micro Devices, at least in the short term, comes from the refresh cycle for central processing units (CPUs) and graphic processing units (GPUs). AMD has dominated these areas in the past and is likely to continue to show strength as the cycle refreshes.
Growth in the company’s total addressable market (TAM) is one reason analysts are forecasting 66% earnings growth for AMD in the next 12 months. That could also be why Cathie Wood is taking a keen interest in AMD stock. Not all the news is good, however. Morgan Stanley (NYSE: MS) recently downgraded AMD from Overweight to Equal Weight. It did, however, maintain its $176 price target.
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
- $137.18
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 29 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $192.79 (40.5% Upside)
