Advanced Micro Devices (abbreviated AMD) is an American hardware company founded on May 1, 1969 in Sunnyvale, California, with a global market presence. The company is in the business of developing and selling processors, APUs, GPUs and chipsets. The company also owns an 8.6% stake in Spansion, a flash memory manufacturer. The products are manufactured by external suppliers: GPUs are manufactured by TSMC, CPUs are manufactured by GlobalFoundries together with TSMC, and chipsets are manufactured by GlobalFoundries. Graphics cards are produced by each company on its own. AMD’s biggest competitors are Intel, which mainly produces CPUs and chipsets, and nVidia, which mainly produces GPUs. In 2011, AMD is the 2nd largest company developing processors (mainly x86 compatible, but also ARM processors), graphics chips and chipsets.
Shares of Advanced Micro Devices (NASDAQ: AMD) are up 75.9% for the first six months of this year, according to data provided by S&P Global Market Intelligence. The stock managed to overcome a sizable year-over-year decline in first-quarter revenue and a lackluster second-quarter outlook, driven by hopes for continued growth in the data center business. The company’s recent and projected results are not great. After a solid fiscal 2022, AMD’s top line fell 9% year-over-year in the first quarter, primarily due to a weakening PC market. For the same reason, revenue for the quarter ending in June is expected to fall nearly 20%. In fact, the stock briefly stumbled after the release of Q1 numbers that fell short of the highest estimates. Advanced Micro Devices stock also shows hope for potential growth, thanks to the growing use of data centers, which the company has been actively expanding since this year, but also artificial intelligence (AI) to support that growth. Even though AMD has been using AI for some time, the company has only recently begun to take full advantage of it. The company also unveiled its new MI300 chip last month, which is the world’s most advanced accelerator for generative AI” This new technology will better equip Advanced Micro Devices to compete with Nvidia in the AI arena .
The company reported total revenue for the first quarter of 2023 of $5.353 billion with a decrease of 9%. The company’s net income was $970 million with a decrease of 39%. The strategically important Data Center and Embedded segments contributed more than 50% to first quarter revenue. The company continues to be one of the most trusted companies in computing, primarily due to its Microsoft Azure cloud services, Google Cloud and Oracle Cloud infrastructure. AMD also announced new features on AMD EPYC tm processors. The company also expanded the capabilities for developers to develop AI using AMD products.
The average target price for Advanced Micro Devices (NASDAQ:AMD) stock for the short to medium term investment horizon has been set by global analysts at $136.3 per share.