AMD Stock Gains +40% Since Last Christmas and Should Follow Up Trend

The price of AMD shares has climbed more than 40 percent since Christmas. Not surprisingly, thanks to powerful products that the chip maker is able to gain market share from its main competitor, Intel. If this trend continues, profits could double. This is the best requirement for the share to continue to increase in 2019.

AMD Stock Gains +40% Since Last Christmas and Should Follow Up Trend

AMD delivered a fourth quarter slightly below expectations, but competitors Intel and Nvidia published even worse figures. Additional problems, such as Intel’s 10nm production or the bursting of Nvidia’s cryptographic bubble, were avoided by AMD thanks to strong technological development and a diversified product portfolio.

For example, the delay in Intel’s 10 nm production also affected Intel’s 14 nm production. Intel has already tried to compensate for production difficulties with significant price increases as early as September 2018. A graph of the Reddit Ingebor user clearly shows how Intel massively increased CPU prices and therefore lost significant shares in individual developments compared to AMD.

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Each quarter that AMD performs better than its main competitors means a long-term increase in market share. Once customers are won, they often remain loyal to the brand. This is because the performance difference between the different manufacturers in the CPU or GPU market narrows and is therefore less decisive as a purchasing argument.

If AMD can continue this trend, sales should increase rapidly in the coming years. Bloomberg analysts, for instance, expect AMD to improve revenues by 25 percent and margins by five percent over the next two years. This would mean a doubling of EBITDA.