AMD (NASDAQ: AMD) has gone from stock market obscurity, to one of the hottest stocks of the current month. Buoyed by increased consumer demand and strong revenue, AMD stock is now rising, while closest rival Intel (NASDAQ: INTC) is falling in terms of investor favor.
AMD stock has regularly been rated as a BUY stock this quarter, and at least one analyst is expecting even better prices in the coming months.
What Has AMD Done to Reclaim Investor Confidence
AMD is one of the largest microprocessor companies in the world, producing chips that are used in personal computers, supercomputers, server computers, and both the Microsoft Xbox One and PlayStation 4 video gaming consoles. While the company has always maintained a fair amount of consumer mindshare, they have spent the last decade languishing behind Intel.
This changed in 2017 with the release of the Ryzen platform. The new microprocessor architecture brought AMD stock back to competitive levels with Intel. Most importantly, AMD was more competitive on price, deeply undercutting its rival.
Intel was quick to respond, but this only served to create distrust with consumers, who have suspected for years that Intel was delaying innovation and keeping prices high due to a lack of competition.
AMD broke its own sales records with the release of Ryzen products, increasing revenue from $4.27B in FY16, up to $5.33B in FY17. This was an increase of 24.74% and was exactly the news that investors wanted to see.
AMD released the second generation of Ryzen processors this year, to strong tech industry reviews. They have also expanded their market share in the server computing space, with high performance multicore processors.
More Good News Could be On the Horizon
The growth in revenue last fiscal year, and the successful release of new processors this year has seen AMD stock climb significantly. As of Friday premarket, AMD price has grown 12.75% in five days. Over the last three months, the increase has been 64.62%. For the entire year so far, AMD value has increased 116.83%, and some analysts believe that it is not going to slow down any time soon.
Hans Mosesmann, a respected analyst for Rosenblatt Securities, has given AMD a price target of $30. Mosesmann bases his figure on recent growth as well as estimated growth potential over the rest of the fiscal year.
AMD is an affordable stock with a relatively low market cap of $20.37B. For investors looking for a bargain stock in the tech sector, AMD is one of the most compelling at this stage of 2018.
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