AMD Stock Forecast 2023: Will AMD Rise Above $100?
AMD Stock Forecast 2023: AMD is technically neutral. The 12-month AMD Stock Prediction is now increased to $91.
AMD Stock’s Latest Price
AMD performance in the last 12 Months
- Last 1 Month
- AMD: -11.73%
- Last 3 Months
- AMD: -7.58%
- Last 12 Months
- AMD: -13.05%
AMD Stock Forecast: Analysts
|Average AMD Stock Forecast for the next 12 Months||$91|
AMD Stock Price Prediction for the next 5 years (Aggregated)
- AMD Stock Price Prediction 2023 is $164
- AMD Stock Price Prediction 2024 is $213
- AMD Stock Price Prediction 2025 is $247
- AMD Stock Price Prediction 2026 is $292
- AMD Stock Price Prediction 2027 is $327
AMD Stock Forecast 2023: Technical Analysis
Performance on the last Trading Day
- Open Price: $83.54
- Close Price: $81.59
- Gain/Loss: -9.25%
- Overall Market Cap: $131.36B
- Volume: 109,065,686
AMD Stock Forecast: Q3 Result
- The revenue of the company decreased from $6.55B (Q2) to $5.57B (Q3). This happened with a YoY of 29.03% (Q3) as compared to 70.13% YoY (Q2).
- EPS for Q3 stands at 0.04 as compared to 0.28 (Q2), with a YOY growth rate of – 94.62% (Q3) as compared to -52.68% (Q2).
- Cashflow from operating activities is $965M (Q3,2022) as compared to $849M (Q3,2021), which is an increase of 13.66% YoY.
- Net Income for Q3 is $66M with a YoY of -92.85%.
- Segment-wise revenue data are as follows: Data Center $1609, Client $1022, Gaming $1631, Embedded $1303
AMD projected that the revenue in Q4 would range between $5.2 billion to $5.8 billion, which is 14% higher than the same quarter, the previous year, and its full-year sales would be between $23.2 billion to $23.8 billion.
AMD said that its results were affected by its sales in the PC sector where they fell by 40% and its reduction in inventories in the PC supply chain.
AMD Stock Forecast Today
|1. Market's Wisdom||Partially Bearish|
|1a. Market Data||Bearish|
|1b. Technical Recommendation||Buy|
|2. Crowd's Wisdom||Partially Bearish|
|2a. Social Media Buzz||Steady|
|2b. Social Media Sentiment||Neutral|
AMD Stock Forecast: AMD vs Nvidia- A tough call
- AMD and Nvidia are both been outstanding performers for the year. While Nvidia has given more than 100 percent return, AMD has only given 80 percent return. Both stocks are trading at almost all-time highs, touching new highs day after day. So which one among the two is better for investors?
- AMD is growing at a faster pace than Nvidia. AMD expects 65 percent revenue growth in 2021, up from its prior guidance of 60 percent, whereas analysts expect Nvidia to end the fiscal year with 54 percent growth, lower than that of AMD.
- AMD has diverse catalysts. While Nvidia gets most of its revenue by selling graphic cards, AMD on the other hand gives investors a chance to take advantage of more opportunities as it sells CPUs for computers aside from selling graphic cards. AMD’s horizon is more and it is expected to increase in near future with the launch of new products.
- Valuation is tilted in favor of AMD because AMD is trading at 40 times trailing earnings whereas Nvidia is trading at 95 times trailing earnings. Also, AMD’s price-to-sales ratio is 10.7 which is much lower than Nvidia’s multiple of 30.7.
Choosing AMD over Nvidia is everybody’s guess right now as AMD is expected to outpace Nvidia in near future, has a wide range of products, and is available at a cheaper price.
AMD Stock Forecast: Background (AMD)
AMD is an American multinational semiconductor company headquartered in California and focuses on computer processors and related technology. Advanced Micro Devices was founded by Jerry Sanders along with seven of his colleagues on May 1, 1969. The company’s product includes x86 microprocessors, accelerated processing units, discrete graphics processing units, chipsets for personal computers, and gaming datacentres.
Partnership with Meta- A giant leap for future
- Advanced Micro Devices showed ultra-momentum on Monday and shares held to the all-day gains after analysts were upbeat about the company’s new data center deal with Facebook
- During an online event, AMD announced that Meta (Facebook) is adopting its EPYC central processing units or CPUs. AMD already supplies processors to cloud computing providers such as Amazon, Microsoft, and Alphabet
- Facebook’s win was a surprise because it earlier used Intel processors. AMD also launched Instinct MI200 series accelerators optimized for high-performance computing and artificial intelligence workload.
- Meta said in its third-quarter press release that it plans to invest as much as $10 billion in its augmented reality and virtual reality products and services. Serving as their prime technology supplier is very lucrative for AMD and it speaks volumes of its preparedness for the next 10 years to take on its competitors Intel and Nvidia.
partnership with Energy Sciences network:
AMD partnered with the Energy Sciences Network (a high-speed computer network working for the U.S. Department of Energy). They have been working with each other since 2018 for ESnet6 (next-generation network for the U.S. DoE). AMD would help the ESnet6 network to bring into the service by using its adaptive networking technology.
AMD Recent Developments
AMD Announces Ryzen 7040U CPUs for Ultra Thin & Light Laptops
The most recent mobile CPUs from AMD are part of the Ryzen 7040U family. The new processors provide top-tier thin-and-light laptops access to AMD’s most recent 4nm Zen 4 architecture with RDNA 3 integrated graphics. AMD’s Ryzen 7 7840U provides 29% greater content creation performance, 37% better online performance, 39% better productivity performance, and 128% better media encoding performance when compared to the Intel Core i7-1360P. Similar findings may be drawn from the GPU gaming benchmarks. At 1080p (low settings), the Radeon 780M iGPU surpasses the Iris Xe graphics on the Core i7-1360P. To assess if the new chips live up to AMD’s claims, we advise taking these benchmarks with a grain of salt and waiting for impartial evaluations.
AMD shares sink on forecast miss with chip market weak
A second-quarter projection that fell short of Wall Street forecasts caused Advanced Micro Devices’ stock to decline on Tuesday, overshadowing company leaders’ optimism that the damaged chip market will begin to rebound in the second half of 2023.
After the company reported first-quarter sales that fell short of analyst expectations for its two largest segments, PC and data centre chips, AMD shares dropped 7% in extended trading.
Executives from AMD competitor Intel Corp told investors last week that they anticipated a second-half PC market recovery that would increase Intel’s profitability. These comments raised expectations that AMD’s PC business may also be showing signs of recovery, but the company’s financial reports revealed that demand is still declining.
AMD Reports First Quarter 2023 Financial Results
AMD reported $5.4 billion in sales, a gross margin of 44%, an operational loss of $145 million, a net loss of $139 million, and a diluted loss per share of $0.09 for the first quarter of 2023. Operating income was $1.1 billion, net income was $970 million, and diluted earnings per share were $0.60 on a non-GAAP(*) basis. The gross margin was 50%.
Statements about AMD’s prognosis are based on current anticipations. The statements that follow are forward-looking, and actual outcomes might vary significantly depending on the situation of the market and the variables listed under “Cautionary Statement” below.
AMD anticipates sales of around $5.3 billion, plus or minus $300 million, for the second quarter of 2023. AMD anticipates a non-GAAP gross margin of about 50%.
AMD Stock Forecast: Final Take
AMD has constantly focused on research and delivering on its promises. It has been in the market since 1969, partnered with Intel, and is all set to acquire Xilinx. The company is in the right sphere when looked at from the financials and fundamental prism. Also, the Facebook announcement has only helped to increase the morale of investors.
AMD has not placed a wrong foot in the past six years since its President Lisu Su took over its reign and is expected to outperform its competitors in near future.
It will be interesting to watch how its new partnership with Meta pans out and that will decide whether AMD will keep on touching new highs or will it see a major correction.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.