AMD seeks to benefit from a growing chips need for a wider range of products, and given the marekt selloff we think AMD is set to benefit and reward investors
AMD seeks to benefit from a growing chips need for a wider range of products, and given the marekt selloff we think AMD is set to benefit and reward investors
AMD is proven itself in recent years with data center and chips for servers and gaming consoles. Given the demand for chips in a wide variety of electronics AMD has had success executing its roadmap.
AMD has had success with EPYC servers notably at Intel’s expense. AMD has recently produced GPUs that are superior to Intel’s and as a result is taking market share from Intel. Firms such as AMD, Nvidia, and Intel should continue to see demand for chips as a secular shift from on-premise to cloud computing is underway.
AMD’s acquisition of Xilinx helps to give it a $10 billion increase in revenue due to its potential for supplying chips to the automotive industry. As a wider range have products now have computer chips and processing units, AMD seeks to gain market share, especially in automotive and data centers.
MorningStar has given AMD a price target of $130, giving it a potential upside of 36%.