AMD Stock Latest Earnings Updates: – Spaxton School

AMD Stock Forecast 2024: Latest Price

AMD performance in the last 12 Months

• Last 5 Days: +5.9%
• Last 1 Month: +8.3%
• Last 6 Months: +81.8%
• Last 12 Months: +30.6%

AMD Stock Latest Earnings Updates:

• Despite a fourth-quarter earnings report sell-off, AMD’s stock surged 17% in 2024, backed by robust growth prospects in the data center segment and generative AI technology.
• In Q4 2023, AMD posted earnings of 77 cents per share on $6.17 billion in sales, beating analyst expectations, yet it faces challenges in the gaming and embedded systems markets.
• For Q1 2024, AMD projected sales of $5.4 billion, below analyst estimates of $5.73 billion, citing weaknesses in its PC gaming and embedded markets.
• AMD’s stock holds a stellar IBD Composite Rating of 99, signaling strong growth potential, and an Accumulation/Distribution Rating of B, indicating increasing institutional buying interest.
• With a market cap surpassing $300 billion for the first time, AMD emerged as the second-best performer in the S&P 500 and the most active stock in the Nasdaq 100, per Dow Jones Market Data.

AMD Stock Forecast Today, Tomorrow and Week

UTC: Mar 1st, 2024 12:04 PM

• AMD Stock Price Prediction in the next 24 hours is between $181 and $198
• AMD Stock Price Prediction this week is between $179 and $199

AMD Stock Forecast: Analysts

Average AMD Stock Forecast for the next 12 Months	$121.6
ROTH MKM	$125
UBS	$135
William Stein	$98
Mizuho	$130
Barclays	$120

AMD Stock Latest News

• AMD’s stock soared 9.1% to $192.50, driven by its advancements in AI technology and data center market growth, overshadowing Intel and rival Nvidia.
• The chipmaker’s focus on AI chips, like the MI300 and MI400, signals its aggressive push into the burgeoning AI market, aiming to capture a significant share amidst Nvidia’s dominance.
• By the end of 2024, AMD projects data center products to contribute 50% of its revenue, a substantial increase from just 10-15% five years ago, as per Bank of America’s report.
• Analysts estimate AMD’s AI chip sales to reach $3.5 billion in 2024, though Nvidia currently commands around 80% of the AI chip market, particularly in AI model training.
• Generative AI technology, enabling the creation of diverse content like text, images, and sounds, underscores AMD’s strategic direction amid the AI boom.

AMD Stock Forecast: AMD Stock Price Prediction for the next 5 years (Aggregated)

• AMD Stock Price Prediction 2023 is $193
• AMD Stock Price Prediction 2024 is $233
• AMD Stock Price Prediction 2025 is $268
• AMD Stock Price Prediction 2026 is $314
• AMD Stock Price Prediction 2027 is $349

AMD Stock Earnings Highlights

AMD Stock Forecast: Last 4 Quarterly Earnings

Second Quarter 2023

• Net Revenue: The company generated a total net revenue of $5.359 billion for the quarter.
• Segment Information: AMD’s revenue was distributed across its business segments as follows:
  • Data Center: Net revenue of $1.321 billion.
  • Client: Net revenue of $998 million.
  • Gaming: Net revenue of $1.581 billion.
  • Embedded: Net revenue of $1.459 billion.
  • All Other: No revenue was reported for this segment.
• AMD reported an operating loss of $20 million for the quarter.
• The company had a total of $6.285 billion in cash, cash equivalents, and short-term investments.
• Capital Expenditures: AMD invested $125 million in capital expenditures during the quarter. And the company’s Adjusted EBITDA was $1.224 billion.
• AMD generated a free cash flow of $254 million during the quarter.

(USD)	June 2023	Mar 2023	Dec 2022	Sep 2022
Revenue	5.36B	5.35B	5.6B	5.57B
Net income	27.0M	-139M	21M	66M
Diluted EPS	0.02	-0.09	0.01	0.04
Net profit margin	46%	-2.60%	0.38%	1.19%
Operating income	-20M	-145M	-549M	-13M
Net change in cash	16M	-1.01B	1.44B	-1.57B
Cost of revenue	3.12B	2.69B	2.75B	2.8B

AMD Stock Forecast: AMD vs Nvidia- A tough call

1. Nvidia Performance and Outlook:
   • Nvidia has seen impressive growth, particularly in the data center segment.
   • In Q3 FY24, Nvidia achieved 279% growth in data center revenue, reaching a record $14.51 billion.
   • Nvidia has a dominant position in the AI market, with estimates suggesting it has captured at least 70% of the global AI market.
   • The company’s market share in the data center GPU segment stands at 92%.
   • Nvidia’s operating income increased significantly, driven by strong demand for its products, particularly from big tech companies.
   • The company’s price-to-earnings ratio (P/E) is estimated to decrease from 270 in 2023 to 59.77 in 2024, indicating strong fundamentals and future growth potential.
   • Analysts’ average price target for Nvidia is $683.26, with a high estimate of $1100 and a low forecast of $560 per share.
2. AMD Performance and Outlook:
   • AMD’s performance has been mixed, with growth in some segments and declines in others.
   • Data center revenue was up 38% year-over-year in Q4 2023, but the company expects flat revenue for Q1 2024.
   • AMD’s market share in the data center GPU segment is much smaller compared to Nvidia, standing at only 3%.
   • The acquisition of Xilinx helped boost AMD’s revenue in the embedded segment.
   • AMD’s price-to-earnings ratio was 89.28 in 2023, with an estimated decrease to 60.84 in 2024.
   • Analysts’ average price target for AMD is $194.16, with a high estimate of $270 and a low forecast of $140 per share.
3. Comparison:
   • Nvidia continues to lead in market share and investor focus, with strong growth prospects.
   • AMD is making efforts to compete, particularly with its MI300 Series accelerators, which are priced competitively and offer impressive performance.
   • Despite AMD’s advancements, Nvidia is expected to maintain its lead in the AI GPU market, potentially capturing up to 95% market share.
   • Analyst forecasts suggest both Nvidia and AMD stocks have potential for significant gains, with Nvidia’s optimistic forecast at a 59% gain and AMD’s at a similar level of 56%.

Overall, while AMD is making strides in certain segments, Nvidia’s dominance in key markets like AI and data centers is expected to continue in 2024.

AMD Stock Forecast: Background (AMD)

AMD is an American multinational semiconductor company headquartered in California and focuses on computer processors and related technology. Advanced Micro Devices was founded by Jerry Sanders along with seven of his colleagues on May 1, 1969. The company’s product includes x86 microprocessors, accelerated processing units, discrete graphics processing units, chipsets for personal computers, and gaming data centers.

Partnership with Meta- A giant leap for the future

• Advanced Micro Devices showed ultra-momentum on Monday and shares held to the all-day gains after analysts were upbeat about the company’s new data center deal with Facebook
• During an online event, AMD announced that Meta (Facebook) is adopting its EPYC central processing units or CPUs. AMD already supplies processors to cloud computing providers such as Amazon, Microsoft, and Alphabet
• Facebook’s win was a surprise because it earlier used Intel processors. AMD also launched Instinct MI200 series accelerators optimized for high-performance computing and artificial intelligence workloads.
• Meta said in its third-quarter press release that it plans to invest as much as $10 billion in its augmented reality and virtual reality products and services. Serving as their prime technology supplier is very lucrative for AMD and it speaks volumes of its preparedness for the next 10 years to take on its competitors Intel and Nvidia.

partnership with Energy Sciences network:

AMD partnered with the Energy Sciences Network (a high-speed computer network working for the U.S. Department of Energy). They have been working with each other since 2018 for ESnet6 (next-generation network for the U.S. DoE). AMD would help the ESnet6 network to bring into the service by using its adaptive networking technology.

AMD Stock Forecast: Final Take

AMD has constantly focused on research and delivering on its promises. It has been in the market since 1969, partnered with Intel, and is all set to acquire Xilinx. The company is in the right sphere when looked at from the financials and fundamental prism. Also, the Facebook announcement has only helped to increase the morale of investors.

AMD has not placed a wrong foot in the past six years since its President Lisu Su took over its reign and is expected to outperform its competitors in the near future.

It will be interesting to watch how its new partnership with Meta pans out and that will decide whether AMD will keep on touching new highs or will it see a major correction.

Note:  collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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