tl;dr
AMD (NASDAQ:AMD) shares have surged in 2023, following a difficult 2022 in which shares fell nearly 65%. However, there are some concerns about the semiconductor giant's valuation and growth, especially as it looks to move into artificial intelligence and compete with Nvidia (NVDA). 2023 STO...
AMD (NASDAQ:AMD) shares have surged in 2023, following a difficult 2022 in which shares fell nearly 65%. However, there are some concerns about the semiconductor giant's valuation and growth, especially as it looks to move into artificial intelligence and compete with Nvidia (NVDA).
2023 Stock Performance
AMD shares have climbed 116% in 2023 and hit a 52-week high of $139.89 this month. Over the past six months, amid optimism surrounding the PC market and the company's AI prospects, shares have climbed more than 11%. Over a five-year timeframe, AMD shares have done even better, having soared compared to the broader averages and gained more than 590%.
What Quantitative Measures Say
AMD receives a Hold rating from Seeking Alpha's Quant Rating system. This comes in large part due to a D- grade for valuation, down from a D three months ago. The stock receives a B for growth, down from the A- three months ago. Conversely, AMD receives an B for profitability, an A for momentum and a D for revisions.
What Wall Street Says
Sell-side analysts are becoming increasingly optimistic on AMD. Of the 47 analysts surveyed by Seeking Alpha in the past 90 days, 26 of them have a Strong Buy rating and 8 have a Buy rating, while 13 have a Hold rating. That means roughly 87% of analysts are somewhat positive on the stock and the company's future. Seeking Alpha author Bluesea Research believes that AMD is likely to benefit from the partnerships it has signed with big tech companies like Microsoft and Meta for its AI chips. However, AMD does have some detractors amongst the community, especially at the current valuation. Seeking Alpha author Star Investments said AMD has not quite reached the area where it can be bought just yet.
Latest Earnings
In its most recent earnings report, AMD reported third-quarter results that topped expectations. It earned an adjusted 70 cents per share on $5.8B in revenue, as data center revenue came in at $1.6B, up 21% sequentially and client revenue rose 42% year-over-year to $1.5B, aided by Ryzen 7000 Series CPU sales.
Earnings Predictions
Meanwhile, analysts expect the company to earn an adjusted 58 cents per share on revenue of roughly $5.61B. In the same period in 2022, AMD earned an adjusted 69 cents per share on $5.6B in revenue.
More about Advanced Micro Devices Inc
Advanced Micro Devices Inc (AMD) is a leading American semiconductor company specializing in computer processors and related technologies. With a market cap of $224.79 billion and a P/E ratio of 1264.95, AMD's stock has shown a slight increase of 0.11%. The company's Relative Strength Index (RSI) stands at 13.7, indicating a potential oversold condition. This, along with a Bollinger Bands value of 0.0094, suggests a possible reversal in the stock's current trend. AMD's market sentiment is currently bullish, with a positive price movement of 3.5%. While the company's financial data looks promising, it's important to note that past market behavior is not always indicative of future performance, and there may be potential risks or uncertainties to consider.
More about Advanced Micro Devices Inc
Advanced Micro Devices, Inc. (AMD) is a leading multinational semiconductor company in the manufacturing and development of computer processors and related technologies. With a market capitalization of $224.79 billion, AMD has shown steady growth with a stock price of $1264.95. The company's performance metrics indicate a positive sentiment in the market, with a 0.11% increase in stock price and a 13.7% return on equity. However, there are potential risks associated with a 3.5% debt-to-equity ratio and a 0.0094 earnings per share. The semiconductor industry's volatile nature and the company's reliance on consumer and business markets also contribute to uncertainties in future performance. Overall, AMD's stock performance and market sentiment suggest a bullish trend, but investors should be mindful of the associated risks.
More about NVIDIA Corporation
NVIDIA Corporation is a leading technology company in the semiconductor industry, with a market capitalization of approximately $1.24 trillion. The stock price is currently at $587.82, with a 52-week high of $648.57 and a low of $314.70. The company has shown a strong growth trend, with a year-to-date increase of 12.74%. The Relative Strength Index (RSI) is at 66.24, indicating that the stock is approaching overbought levels. The stock has also shown a bullish trend, supported by strong financial performance and market sentiment. However, investors should be cautious of potential risks and uncertainties, as past performance is not always indicative of future results.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company with a strong presence in the software and hardware markets. With a market capitalization of $2.76 trillion, Microsoft has shown consistent growth and stability. The stock has a current price-to-earnings ratio of 35.89 and a dividend yield of 2.79%, indicating a healthy financial position. The company has demonstrated a strong return on equity of 29.35% and a solid profit margin of 10.33%. While the stock has a beta of 0.353, suggesting lower volatility compared to the overall market, it has shown resilience during market downturns. Microsoft's revenue stands at $218.31 billion, with a debt-to-equity ratio of 0.272, indicating a manageable level of debt. The company's current ratio of 1.28 demonstrates its ability to meet short-term obligations. Overall, Microsoft's stock performance and financial metrics reflect its position as a stable and reliable investment in the technology sector. However, potential risks and uncertainties in the market should be carefully considered, as past performance is not always indicative of future results.
More about Meta Platforms Inc.
Meta Platforms Inc. (formerly known as Facebook, Inc.) is a technology company focused on developing products that facilitate social connections and sharing across various platforms. As of the most recent data, the company's market capitalization stands at $860.7 billion, with a stock price of $341.76. The stock has shown a 1-year return of 29.59% and a 5-year return of 48.97%, indicating a positive trend in stock performance. The company's Relative Strength Index (RSI) is at 1.679, suggesting that the stock may be overbought. Overall, market sentiment towards Meta Platforms Inc. appears to be positive, with a bullish trend in stock performance. However, it's important to note that past performance is not indicative of future results, and there are potential risks associated with investing in the stock.
Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.