Where Will AMD Stock Be in 3 Years?
With shares up by over 20% year to date, Advanced Micro Devices (NASDAQ: AMD) stock has hit the ground running in 2024. The move is likely due to optimism surrounding its new Ml300x chips for training generative artificial intelligence (AI) platforms, which could boost near-term revenue and profits. But what could the long-term hold? Let's explore how this exciting chipmaker may perform over the next three years.
On the surface, AMD's meteoric rise in 2023 and 2024 may seem confusing. After all, third-quarter revenue only increased by a measly 4% year over year (to $5.8 billion), and the company's core business of selling central processing units (CPUs) for PCs and laptops isn't exactly a red-hot industry. But now, AMD's valuation and future seem to rest on something new: AI chips.
In 2023, AMD announced its much-anticipated Ml300x family of graphics processing units (GPUs) designed to help data-center clients train and run AI applications. It is unclear how much revenue the new products will generate. But AMD has already secured high-profile clients like Microsoft and Oracle, and its CEO Lisa Su expects AI chips to add a $400 million boost to fourth-quarter sales, rising to more than $2 billion in 2024.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 81 Buy predictions and 1 Sell predictions.
With a target price of 176 € there is a positive potential of 21.53% for Advanced Micro Devices Inc. compared to the current price of 144.82 €.
