Its time to talk about one of my favorite companies currently on the market, $AMD better know as Advanced Micro Devices.
Current Price: $50.28
52Wk/ High: $59.27
Read below to read the breakdown.
Advanced Micro Devices is one of the top chipmakers in the market and is an extremely well-known name.
The companies main focus is on making some of the best products for the CPU market. AMD also has a focus on other parts of the chip world such as data centers and the ever-evolving gaming world.
Not only that but ever sense CEO Lisa Su came on board as CEO in 2014 the stock has rebounded off of lows and became an extremely bullish stock throughout the years.
It is not hard to see why investors are bullish on the name either. AMD is consistently gaining market share. While $NVDA is still the clear leader $AMD is coming up on Intel and could soon be right behind $NVDA.
More the positive tailwinds from the rapid gaming, PC, and data center growth is pushing the company to new heights.
The gaming industry specifically is really exciting for AMD. Given that both the PS5 and Xbox Series X will be using AMD CPU’s and GPU’s, big revenue from both could very likely be a result for AMD.
Getting on to their last reported earnings the company did a fabulous job given the circumstances. $AMD reported Q1 right in line with expectations, delivering a solid $0.18 EPS. Not only that but revenue met expectations as well with net revenue of $1.8 billion.
The company also expects major growth in 2020. AMD expects revenue to grow 25% with gross margin moving up to 45%.
Furthermore, the company is well-positioned for headwinds and decreasing demand due to COVID. As it stands $AMD reported a cash position of $1.385 billion on March 31, representing an increase of 16% YOY.
Analysts are also bullish on the name. Currently, the average price target is $57.34/share representing a 14.04% upside. Secondly, the high price target consensus is $70.00/share and the low is $33.00/share so analysts are very divided on AMD.
The big money is also bullish on Advanced Micro Devices. Currently, 70.69% of AMD is owned by institutions. Top shareholders include Vanguard Group, Black Rock, FMR LLC, JP Morgan Chase, and many more.
In all Advanced Micro Devices is a great company and one of my favorite names in the market. In recent days the stock has seen a pullback to a rough $50/share support and now might be the time to buy.
I am bullish on AMD and have it on my watchlist for a possible investment in the coming days. In the meantime, I encourage you all to take a look at $AMD.
Disclaimer: This is not direct financial advice, simply opinion based on independent research.