AMD stock (NASDAQ: AMD) boosted by Google’s Stadia and 25% revenue and 5% margins growth in two years

The AMD share (NASDAQ: AMD) is expected to strengthen over the long term. This analysis is based on AMD’s recent partnership with Google. The big giant, also in the gaming industry. The new innovation will compete directly with the Sony PlayStation 5, the so-called PS5 and the XBOX Scarlett from Microsoft. Cloud-based gaming service is provided, so no hardware is required. The optimistic news for AMD is that the servers used for Google’s cloud gaming service come from AMD. That’s certainly the reason AMD’s share price is rising. The fact that Advanced Micro Devices Inc. will benefit from Google’s new Stadia platform as far as its GPU business is concerned is likely to have been known to the market before the announcement, according to analysts.

AMD stock (NASDAQ: AMD) boosted by Google’s Stadia and 25% revenue and 5% margins growth in two years

 

With the introduction of the Stadia platform, Google has formally announced its entry into cloud-based games. In addition, the use of GPUs has been confirmed by Advanced Micro Devices Inc. However, the news is not surprising, as AMD CEO Lisa Su said earlier this year that Radeon GPUs would be used in Google’s Project Stream.

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Stock market analysis for AMD

Expert analysists recommend the Advanced Micro Devices stock for “buy” and confirm the target price of USD 42.00.

Now is the time for the U.S. company to glow after AMD’s share gained about 12% on Tuesday. Investors were surprised at the beginning of the week to hear the announcement of Google’s cloud gaming service called Stadia. The partnership between the chip maker and the Internet giant had been known since January. The new offering is scheduled to begin in 2019 and offers players the opportunity to stream numerous video games over the Internet without their own console or PC.

AMD stock (NASDAQ: AMD) boosted by Google’s Stadia and 25% revenue and 5% margins growth in two years

However, Google’s confirmation is a compliment to AMD. We believe that, over time, cloud games will replace the common console and mobile device player. Ultimately, the shift to cloud gaming will be profitable for AMD in the bottom line. However, the dominant position in the console segment could be a burden.

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AMD stock will increase revenues by 25% and margins by 5% over the next two years

The agreement with Google is a milestone for AMD and an important signal for investors. The direction is clear: gain more market share thanks to overflowing competition. If AMD can continue this trend, sales should grow dynamically in the coming years. The analysts at Bloomberg expect AMD to improve revenues by 25% and margins by 5% over the next two years.

 

The shareholder” considers that this scenario is likely to recommend AMD’s share as a new purchase. According to the recent stock analysis, those who followed the recommendation remained in it and followed the upward trend.

How Google Stadia and AMD partnership works?

According to the cloud model, a selection of PC games will be available in 4K high resolution, followed later by 8K. On Tuesday Google presented a driver of its own development for control purposes. The device looks like previous drivers for consoles or game PCs but has two additional buttons. With just one button you can activate the Google Assistant language assistant, which is used to give recommendations about what is happening in the game. With the other button, the course of the game can be transferred in real time to the Google YouTube video platform.

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YouTube will also play a role as a Stadia portal: In this way, the player will be able to see another player and enter a game in the cloud service directly from the view.

Google Stadia for Apple iPhones and iPads?

The games service will be available on PCs through the Internet company’s web browser Chrome, on tablets and smartphones with Google’s Android operating system and on TVs. Meanwhile, there was no information on whether Stadia will also be available on Apple iPhones and iPads as well.

Other important questions were also left unanswered. Google did not comment on the business model. It was also unclear exactly what the choice of games would be. Only a few games were announced, including the next first-person shooter “Doom: Eternal”. In a test, Google has already had “Assassin’s Creed: Odyssey” played through the cloud in recent months.