
NASDAQ:AMD
This summary was created by AI, based on 23 opinions in the last 12 months.
Advanced Micro Devices (AMD) has shown remarkable growth and resilience in 2023, with shares increasing by 125% year-to-date. The company's CEO is widely praised for effectively reinventing AMD, highlighting strong operational management. Despite recent challenges, including disappointing forecasts and competition from Nvidia (NVDA), analysts remain optimistic about AMD's long-term prospects, particularly in the CPU market, which has seen unexpected growth. Forthcoming revenue targets indicate substantial upside potential, fueled by partnerships and demand for AI technologies. However, concerns about high valuations and competition persist, leading to discussions on appropriate investment strategies.
Rumour of AMD buying Xilinx AMD would really benefit for Xilinx which makes great chips for autos, defence and telcos. Buying Xilinx would expand AMD's exposure to these sectors and their overall market. The deal is good, but only at the right price--if it happens. The AMD CEO is great. If the deal happens and AMD sells off, then he would buy.
He still likes this company and thinks they are still in the early stages of them taking market share from Intel. He likes their moves into gaming and data centres. Pricing in semi-conductors seems to be stabilizing, which will continue to allow tail winds to continue. It will be a volatile stock, but over the long term it is a good investment.
He does not own it as a single stock, but as part of the SOXX etf. It has taken market share away from INTC and they have been progressive in making chips smaller, making them ideal for autonomous driving and for use in iPhones. The runway is still fairly long, but they are facing more competition. He might consider taking profit and moving into Applied Materials, the equipment supplier for AMD.
Their reported numbers that were perfect and he didn't expect the Xilinx takeover to hurt AMD's share price, but investors dumped the stock. It's come back this week in the election rally, 5% today only.