Where Will AMD Stock Be in 5 Years?

Motley Fool2023-12-21

With its shares more than doubling in 2023, Advanced Micro Devices has been a rewarding near-term investment. While the company's operational results are yet to match its impressive stock price ...

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While the company's operational results are yet to match its impressive stock price ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/12/19/where-will-amd-stock-be-in-five-years/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4567","symbol_name":"ESG概念","start_time":0,"source_url":"https://www.fool.com/investing/2023/12/19/where-will-amd-stock-be-in-five-years/","article_id":"2392478971","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2392478971","pubTimestamp":1703160198,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Expect the company's AI chip business to scale up rapidly over the coming years.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4567":"ESG概念","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4534":"瑞士信贷持仓","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0056508442.USD":"贝莱德世界科技基金A2","BK4566":"资本集团","LU0080751232.USD":"富达环球多元动力基金A","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","BK4550":"红杉资本持仓","BK4141":"半导体产品","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","BK4551":"寇图资本持仓","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","BK4512":"苹果概念","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4549":"软银资本持仓","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4548":"巴美列捷福持仓","BK4529":"IDC概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","AMD":"美国超微公司","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","BK4532":"文艺复兴科技持仓","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","BK4554":"元宇宙及AR概念","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close"},"translate_title":"AMD的股票5年后会在哪里？","themeId":"95e3e7595ac2407d82a2e646db9ba6e0","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMD":1},"content_text":"With its shares more than doubling in 2023, Advanced Micro Devices has been a rewarding near-term investment. While the company's operational results are yet to match its impressive stock price performance, that could soon change.Let's discuss what the next five years could have in store for this legendary tech company as it pivots to new growth opportunities in artificial intelligence (AI).What is Advanced Micro Devices?Since its founding in 1969, Advanced Micro Devices has specialized in creating computer hardware such as memory chips and central processing units (CPUs). After the 2006 acquisition of ATI Technologies, the company became a direct rival of Nvidia in the market for graphics processing units (GPUs), a type of technology with uses ranging from video game rendering to training advanced generative AI models.While Nvidia is widely considered to have the leading edge in the GPU market, AMD traditionally competes based on price and value for money.This strategy has served the company well in the personal computer graphics industry. And AMD could employ a similar strategy to gain market share in AI chips -- a market where Nvidia currently controls 80% of sales volume.Management has high hopes for the futureThe AI chip market is ripe for competition. According to CNN, demand is outstripping supply for the most advanced AI chips, leading to bottlenecks and spiraling costs as more companies race to build and train generative AI models. With a third-quarter gross margin of 74% (up 20.4 points from the prior-year period), Nvidia is taking full advantage of its dominant position to keep prices high.AMD plans to disrupt Nvidia's near-monopoly with its MI300x family of data center chips designed to match or exceed the Nvidia h100 in training and running AI platforms. These new products had a limited impact on AMD's third-quarter revenue, which only grew 4% year over year to $5.8 billion.But investors should expect data center chip sales to ramp up in 2024 as the company begins to deliver the products to clients like Microsoft and Meta Platforms, which have already committed to buying them.AMD's CEO Lisa Su expects the size of the AI chip industry to grow almost tenfold to more than $400 billion over the next four years. And this means the company could enjoy plenty of long-term growth, even if the opportunity lives up to just a fraction of those lofty projections.AMD will have to grow into its valuationTo be fair, AMD's valuation looks high compared to its current performance. With a price-to-sales multiple of 10.22, its shares are significantly pricier than the S&P 500 average of 2.6. And this is a big premium for a company that only grew by single digits in its most recent quarter.That said, investing is all about the future, not the past. And AMD could be on the cusp of spectacular growth over the next half-decade as it scales up its new AI chip business. The stock looks like a buy.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":6,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2392478971"}