If you’ve been following tech stocks in 2018 or even in recent years, then AMD (NASDAQ: AMD) is probably a stock that has been on your radar and maybe even in your portfolio at some stage. AMD, formally trading as Advanced Micro Devices Inc., is one of the world’s most prominent microchip manufacturers and the only real competitor to Intel (NASDAQ: INTC) in the CPU/Central Processing Unit market.
AMD manufactures CPUs that are used in desktop PCs, laptops, servers, and it also manufactures graphics chipsets used in consumer and professional environments.
While AMD has struggled in the last decade to compete with Intel’s technology, a successful stream of product releases in 2017 set the company on a new and highly competitive path. With earnings season well underway, AMD has now announced its best earnings report in years, and stock price has hit levels not seen since 2007.
Massive Gains for AMD and Investors
AMD’s Ryzen™ and Epyc™ CPU products have driven revenue and created huge consumer mindshare for the company. Both consumers and professional users have upped their spending on AMD products, as the manufacturer has finally caught up to and in some ways surpassed Intel’s latest technology. In data centers especially, AMD has experienced massive sales growth.
The turnaround for the company cannot be understated. For the quarter that has just ended, AMD generated revenue of $1.76B, compared to $1.15B a year ago. This exceeded the $1.70B expected by most Wall Street analysts. Both CPU and graphics chips sales have increased 64% compared to the same quarter last year. Sales of embedded and custom chips (used by OEMs for laptops and other devices) have increased by 37%.
This strong financial performance has led to a surge in investor confidence. At the end of trading on Wednesday, stock value was at $18.95 per share. This is the first time in a decade that investors have seen AMD so high. Stock price growth over the last year has been equally impressive, indicating sustained confidence growth as AMD reclaims market share in the chip manufacturing business.
- 1-Year growth is 31.54%
- YTD growth is 78.50%
- 3-Month growth is 65.17%
In a stock market that has been highly volatile, AMD shares have performed exceptionally well.
With a strong product lineup and increasing support from consumers, OEMs, and business clients, AMD is likely to continue to grow in the next quarter. If you’re looking for a low cost but high performing tech investment for your portfolio then this one is worth considering.
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