AMD stock is booming due to the great market success and the pushing back of Intel specifically in the CPU sector. The chip manufacturer will launch a number of new products in 2020 to boost its financial and operational growth, so it is no surprise that investors are increasing their holdings of AMD. In 2016, the share price of AMD was less than 2 dollars, now it is more than 53 dollars, in 4 years the share price jumped 20 or 30 times, is the best performance of U.S. semiconductor companies, and now if anyone dares to bet on AMD, it is financial freedom without a loss.
Now that AMD is enjoying a decent standard, several investors have moved on in the hope that AMD will buy back its shares or increase its dividend payout. In response, AMD CEO Su made a statement at a recent shareholders’ meeting promising that AMD would give something back to shareholders, not now, but within three years.
AMD has been a hot topic of discussion in various investment forums recently. While bearers believe the stock will adjust in the coming weeks in the face of a novel coronavirus outbreak, they believe the stock will continue to rise due to the chip maker’s favorable competitive position and aggressive product roadmap.
Su said AMD would continue to focus on developing and marketing new products.
Corporate Participation in AMD Stock
First of all, it is important to note that professional investors often have several tools at their disposal – such as access to corporate management, supply chain relationships, resources to conduct in-depth research, etc. -which give them an advantage over retail investors. For example, tracking the trading and portfolio changes of these professional investors can sometimes give us important insights into the future direction of a company and its shares.
Although Su did not specifically mention it, AMD’s next key products will be the Zen3 processor, the RDNA 2 architecture graphics card at the end of this year, and then the Zen 4 processor with 5nm process, the RDNA 3 graphics card and the CDNA data center acceleration card, these CPUs and GPUs will be released in the next one to two years.
Reasons to be optimistic
First of all, AMD has consistently experienced strong financial growth, supported by truly competitive products. The company has relied on high discounts in the past to maintain sales momentum. However, since the chip manufacturer launched its zen-based microprocessor a few years ago, it has changed its strategy to compete on performance metrics (not just price) and its revenues have increased many times over since then.
A breakdown of the chip maker’s revenues shows that its computer and graphics divisions reach record highs every quarter. This figure declined sequentially in the first quarter due to cyclical factors and disruptions from new types of coronavirus outbreaks. Despite this, the figure is still a whopping 73 percent higher than last year and shows no credible signs of a long-term slowdown.