Advanced Micro Devices AMD Stock Forecast 2023

AMD Stock Forecast 2023: Latest Price

AMD Latest News

  • AMD’s CEO, Lisa Su, revealed that the company has experienced significant growth in AI customer engagements in the second quarter. AMD’s data center accelerators, Instinct MI250 and upcoming MI300 chips, have attracted strong interest from customers, with engagements growing by over seven times. This surge in AI interest comes amid a slowdown in sales for server and PC chips. AMD sees AI as a major growth opportunity and expects its data center accelerator market to exceed $150 billion by 2027. Additionally, AMD believes AI will drive significant demand for its PC processors, especially with the Ryzen AI processor lineup.
  • According to MarketBeat Ratings, Advanced Micro Devices, Inc. (NASDAQ: AMD) has been given an average rating of “Moderate Buy” by thirty different ratings firms that are analyzing the company’s stock. Out of these, seven analysts have recommended a “Hold” rating, twenty-two have given a “Buy” rating, and one analyst has assigned a “Strong Buy” rating to the company.
  • AMD has announced that it will invest approximately $400 million over the next five years to expand its research, development, and engineering operations in India. The investment is expected to create the largest AMD design center in India and will add approximately 3,000 engineering roles. The new Bangalore campus is expected to open before the end of 2023.

AMD Stock Price Prediction for the next 5 years (Aggregated)

  • AMD Stock Price Prediction 2023 is $118
  • AMD Stock Price Prediction 2024 is $170
  • AMD Stock Price Prediction 2025 is $204
  • AMD Stock Price Prediction 2026 is $250
  • AMD Stock Price Prediction 2027 is $285

AMD Stock Forecast Today

UTC: Sep 24th, 2023 12:41 AM
Overall OutlookNeutral
1. Market's WisdomBullish
1a. Market DataPartially Bullish
1b. Technical RecommendationBuy
2. Crowd's WisdomPartially Bearish
2a. Social Media BuzzHigher
2b. Social Media SentimentLower

AMD Stock Forecast: Analysts

Average AMD Stock Forecast for the next 12 Months$139.6
JP Morgan$130
B of A securities$132

AMD Stock Forecast: Quarterly Earnings

Second Quarter 2023

  • Net Revenue: The company generated a total net revenue of $5.359 billion for the quarter.
  • Segment Information: AMD’s revenue was distributed across its business segments as follows:
    • Data Center: Net revenue of $1.321 billion.
    • Client: Net revenue of $998 million.
    • Gaming: Net revenue of $1.581 billion.
    • Embedded: Net revenue of $1.459 billion.
    • All Other: No revenue was reported for this segment.
  • AMD reported an operating loss of $20 million for the quarter.
  • The company had a total of $6.285 billion in cash, cash equivalents, and short-term investments.
  • Capital Expenditures: AMD invested $125 million in capital expenditures during the quarter. And the company’s Adjusted EBITDA was $1.224 billion.
  • AMD generated a free cash flow of $254 million during the quarter.
(USD)June 2023Mar 2023Dec 2022Sep 2022
Net income27.0M-139M21M66M
Diluted EPS0.02-
Net profit margin46%-2.60%0.38%1.19%
Operating income-20M-145M-549M-13M
Net change in cash16M-1.01B1.44B-1.57B
Cost of revenue3.12B2.69B2.75B2.8B

AMD performance in the last 12 Months

  • Last 1 Month: -0.2%
  • Last 6 Months: +33.7%
  • Last 12 Months: +18.8%

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 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.

Check out our US Stocks and Crypto Trading Predictions

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.