Advanced Micro Devices, Inc. (NASDAQ: AMD) Analysis

Advanced Micro Devices, Inc. (NASDAQ: AMD) is an American multinational semiconductor company. It develops microprocessors, Accelerated Processing Units (APUs), Graphics processors and related technologies and they operate in multiple segments like computing and gaming. AMD was founded 50 years have been over performing with more than ~80% rise in the past year. The major consumers of AMD are Sony Corporation, Microsoft Corporation and HP Inc.  AMD produces its products in 2 segments:  1. Computing and Graphics - x86-based microprocessors and chipsets - GPU (Graphics Processing Unit), APU (Accelerated Processing Unit), SoC (System on chip) and commercial chipsets. The GPUs are mainly for consumer and commercial use. This segment brought in over $6.4B of sales for the year and an operating income of $1.26B.  2. Embedded, Enterprise & Semi-custom (EE&S) - in this segment, AMD basically produces chipsets for servers, embedded systems and for semi-custom usage. This segment brought in $3.3B in revenues and ~$400M in operating income. They have announced that the best processor for laptops and an enterprise variant will likely be available during the first half of 2021. Also launched the fastest AMD gaming graphics card ever. Working with Amazon and Microsoft Azure which are planning to use their upcoming 3rd gen processors. AMD is mergering with Xilinx (NASDAQ: XLNX), a programmable chips giant. Using growth approach, AMD is fairly valued. Price target for 2021 is ~$103, implying a 13.5% return from the last price. Wall St. analysts have a buy call on AMD with an average PT of $100 and a high PT of $135.  AMD is fairly valued and has plenty of room to grow.

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sharwong

Feb 13, 2021

10.75%

Change % Since Posting

93.79

Price When Posted

10.08

Change Since Posting

AMD

Advanced Micro Devices Inc.

103.87

-2.35
-2.21%
Current Price

Advanced Micro Devices, Inc. (NASDAQ: AMD) Analysis

bullish

Advanced Micro Devices, Inc. (NASDAQ: AMD) is an American multinational semiconductor company. It develops microprocessors, Accelerated Processing Units (APUs), Graphics processors and related technologies and they operate in multiple segments like computing and gaming.

AMD was founded 50 years have been over performing with more than ~80% rise in the past year.

The major consumers of AMD are Sony Corporation, Microsoft Corporation and HP Inc. 

AMD produces its products in 2 segments: 

1. Computing and Graphics - x86-based microprocessors and chipsets - GPU (Graphics Processing Unit), APU (Accelerated Processing Unit), SoC (System on chip) and commercial chipsets. The GPUs are mainly for consumer and commercial use. This segment brought in over $6.4B of sales for the year and an operating income of $1.26B. 

2. Embedded, Enterprise & Semi-custom (EE&S) - in this segment, AMD basically produces chipsets for servers, embedded systems and for semi-custom usage. This segment brought in $3.3B in revenues and ~$400M in operating income.

They have announced that the best processor for laptops and an enterprise variant will likely be available during the first half of 2021. Also launched the fastest AMD gaming graphics card ever. Working with Amazon and Microsoft Azure which are planning to use their upcoming 3rd gen processors.

AMD is mergering with Xilinx (NASDAQ: XLNX), a programmable chips giant.

Using growth approach, AMD is fairly valued. Price target for 2021 is ~$103, implying a 13.5% return from the last price.

Wall St. analysts have a buy call on AMD with an average PT of $100 and a high PT of $135. 

AMD is fairly valued and has plenty of room to grow.

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read-time
1 min

103.17

Target Price

8/ 10

Confidence

1-3 Years

Timeframe
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