(VIANEWS) – Shares of AMD (NASDAQ: AMD) jumped by a staggering 28.23% in 21 sessions from $58.6 at 2022-10-27, to $75.14 at 19:27 EST on Friday, following the last session’s downward trend. NASDAQ is dropping 0.52% to $11,226.36, after two consecutive sessions in a row of gains.
AMD’s last close was $75.14, 54.31% under its 52-week high of $164.46.
Why is AMD Stock Going Up?
During the last two years, Advanced Micro Devices, Inc. (AMD) has tripled its revenue. This is a positive for investors. However, AMD is also facing headwinds.
AMD shares have fallen -60% since the beginning of 2022. Some market participants have been indiscriminately hammering AMD on competitor weakness. This is not a good time to buy AMD. You may have to wait for the right market conditions to buy.
AMD has a solid product line. Its data center business is strong. AMD is also gaining market share in the CPU and GPU space. The company’s margins are increasing.
AMD management has reiterated its forward looking growth outlook. They have stated that the PC market will be weaker in Q3. They also stated that the gaming GPU market will be weaker. The company has also confirmed that supply is constrained in the Client segment. This should not be a problem in the future.
AMD is also planning to launch the 4th generation EPYC Genoa in the coming months. These products should take AMD’s market share in the hyperscaler segment. AMD’s data center product portfolio includes specialty chips from Xilinx.
AMD has a lot of room to grow. The company is buying back cheap stock from its free cash flow. This gives it an opportunity to increase its margins. It is also acquiring Pensando Systems, a distributed computing startup. These acquisitions will bolster AMD’s data center capabilities.
AMD is a global CPU and GPU leader. It also competes with Intel in these areas. The company has high margins and should continue to lead in these areas.
Advanced Micro Devices, Inc. is a worldwide semiconductor company. It operates across two business segments: Computing and Graphics, Enterprise, Embedded, and Semi-Custom. The company’s products include x86 microprocessors that are an accelerated processor unit and chipsets. It also offers discrete and integrated GPUs (GPUs), professional and data center graphics, as well as development services. Server and embedded processors and semi-custom System-on-Chip products and services. It offers processors to personal computer desktops and notebooks with the AMD Ryzen PRO and Ryzen Threadripper PRO brands. The AMD Radeon and AMD Embedded Radeon brands offer discrete GPUs that can be used on notebooks and desktops. Professional graphics products are available under the AMD Radeon Pro graphics and AMD FirePro brands. Radeon Instinct and Radeon PROV-series are also available. It offers chipsets with the AMD trademark, microprocessors to servers under AMD EPYC and embedded processor solutions under AMD Athlon and AMD Geode. The company serves online retailers and original equipment manufacturers as well as public cloud service providers. Santa Clara is the headquarters of this company, which was founded in 1969.
Earnings Per Share
As for profitability, AMD has a trailing twelve months EPS of $2.38.
AMD has a trailing twelve months price to earnings ratio of 31.54. Meaning,
the purchaser of the share is investing $31.54 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 7.37%.
Annual Top and Bottom Value
At 19:39 EST AMD stock was valued at $75.14, which is significantly lower than the $164.46 52-week peak and much higher than the $54.57 52-week low.
Growth Estimates Quarters
For the current quarter, the company expects to grow by a net 27.2% and 38.1% respectively.
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