Will AMD Stock Reach $1000?

Latest AMD Stock News

• Advanced Micro Devices has announced that it will supply its adaptive computing technology for use in Hitachi Astemo’s forward-looking camera. AMD’s technology enables the camera to detect objects within a wide 120-degree field of view, enhancing safety features for Hitachi Astemo’s camera system.
• Advanced Micro Devices (AMD) is experiencing a significant increase in interest in artificial intelligence (AI). Following their August earnings call, where AMD revealed a sevenfold increase in customer interactions during the last quarter, CEO Lisa Su mentioned at a conference in San Francisco that this trend has persisted. Customers are showing even more enthusiasm for AI-related products, leading to a continued growth in engagements. Some of these engagements are translating into committed customers, highlighting the growing importance of AI in AMD’s business.

Factors Affecting the AMD Stock

The stocks of a company are widely affected by the company’s ability to deliver. The macro factors like Government regulations, inflation, increase or decrease in interest rates, etc are some factors that are beyond the company’s reach but these factors often send the stock market crashing or surging.

Some factors that are within the reach of the company and that will decide whether AMD stock will reach $1000 in the future or not are:

Positive

AMD’s Healthy Partnership With Sony and Microsoft

Microsoft and Sony chose AMD for their semi-custom chips that are used in gaming consoles from Sony, Microsoft, and Valve. This has been one of the biggest turning point for AMD. AMD won this business because they have leading-edge IP in CPU, GPU, memory, video, audio, and I/O.

AMD Growing Much Faster Compared to Intel: Intel has had a market domination in the computer processor department. However, AMD is now growing at a much faster rate while the market share of Intel is declining. AMD now has a market share of 29.6% up around 6.3% while the market of Intel is 70.4%, down from 76.7%. 

Diversified Business Model: AMD has a diverse business portfolio, including cloud computing, consumer PC components, video games, and embedded products. The data center segment, including partnerships with cloud giants like Microsoft, Google, and Oracle, was a significant growth area.

Additionally, AMD’s exclusive chip supply deals with Sony and Microsoft for their gaming consoles contributed to a 21% increase in gaming segment revenue year over year. Despite challenges, AMD remains well-positioned in a competitive industry.

Negative

Third-Party Dependence

AMD has to depend on third-party companies for the design and manufacture of core-logic chipsets, graphics chips, motherboards, BIOS software and other components that support our microprocessor offerings. In case of failure to secure sufficient support for microprocessor products from these designers and manufacturers, AMD’s business would be materially adversely affected.

Competition and Aggressive Business Strategy of Intel

AMD’s principal competition is Intel. Intel has dominated the market for microprocessors used in desktop and mobile PCs for many years. Intel’s significant financial resources enable it to market its products aggressively. The finances also help Intel to target customers and AMD’s channel partners with special incentives. AMD will have to work in this field in order to become the biggest player in the computer processor market.

Increase Acceptance of 64-bit Technology: AMD must achieve further market acceptance of our 64-bit technology, AMD64, or it will be materially adversely affected.

Will AMD Stock Reach $1000: Conclusion

AMD has constantly focused on research and delivering on its promises. It has been in the market since 1969. The company is in the right position when looked at from the financials and fundamental prism. Added to it, despite some hiccups in the stock market, AMD stock has been trading above 10 days, 20 days, and 50 days moving averages simple and exponential

The current stock price of AMD may not be encouraging but the future of AMD as a company and its stocks is likely to be a bright one.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.