Advanced Micro Devices (AMD) saw its stock surge on Monday, propelled by bullish analyst remarks from Barclays’ Blayne Curtis. By the close of trading, AMD’s stock price was up more than 9%. The bullish outlook was based on Curtis’ expectation that AMD will continue to take market share away from its rival Intel, raising its share price to $85.
AMD’s impressive gains in recent quarters have been driven by its data center segment. Revenue in the segment surged 45% year-over-year to $1.6 billion in the third quarter of 2020. This has helped AMD gain a foothold in the server chip market, with its current market share standing at less than 25%, compared to Intel’s 70%.
The bullishness on AMD was further fueled by Curtis upgrading the chipmaker’s stock to ‘overweight’ from ‘equal weight’ and his belief that AMD’s Genoa and Bergamo platforms will help it take additional market share from Intel. Investors are also optimistic about AMD’s long-term prospects as the company continues to invest in its data center business and its upcoming Ryzen 5000 desktop processors.
Overall, AMD’s stock surge on Monday was due to bullish analyst remarks as well as the company’s success in its data center segment and its potential for further market share gains from Intel. This has many investors optimistic about the future of the chipmaker and its prospects for continued growth.
Why Investors Should Invest in Advanced Micro Devices (AMD) Stock
Advanced Micro Devices (AMD) is an American multinational semiconductor company that has been in the market for almost five decades now. AMD is known for its processors and graphics processing units (GPUs) used in gaming consoles and computers. The company is one of the largest suppliers of computer processors and GPUs.
AMD has a long-standing commitment to innovation, with the company introducing several groundbreaking products over the years. The company’s most recent products, such as the AMD Ryzen CPUs and Radeon GPUs, are both being well-received by the market. As a result, AMD has become a major player in the semiconductor industry and is now a key competitor to Intel.
From an investor’s perspective, AMD is an attractive investment due to its strong product portfolio, competitive pricing, and strong financials. AMD has been consistently profitable in recent years, and its stock price has been trending upwards since 2017. The company also has a healthy balance sheet and a healthy cash flow. These factors make AMD a good option for investors who are looking to diversify their portfolio with a technology stock.
In addition, AMD is also in a strong position to benefit from the growing demands for more powerful processors, GPUs, and computer chips. With the increasing popularity of gaming, virtual reality (VR), and 5G networks, the demand for AMD’s products is expected to increase in the coming years. AMD is also well-positioned to benefit from the growth in AI, with the company’s GPUs being well-suited for AI applications.
Finally, AMD has a strong track record of research and development, with the company launching several innovative products over the years. This is likely to continue in the future, as the company is investing heavily in technological advancements.
Overall, AMD is an attractive option for investors who are looking for a technology stock that is performing well and has a strong track record of innovation. The company’s competitive pricing and solid financials make it a good choice for investors who are looking to diversify their portfolio. Additionally, AMD’s products are well-positioned to benefit from the growing demand for more powerful processors, GPUs, and computer chips.