Intel's 22% share plunge drags down global chip stocks from TSMC to Samsung
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 02 2024
0mins
Should l Buy AMD?
Source: Newsfilter
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 208.440
Low
200.00
Averages
284.10
High
377.00
Current: 208.440
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Reports Strong Q4 Growth and Positive 2026 Guidance
- China Market Contribution: AMD's Q4 sales of $390 million in GPUs to China significantly boosted results, although management forecasts only $100 million in revenue for Q1, indicating potential volatility in future sales from this dynamic market.
- Data Center Revenue Growth: AMD's data center revenue surged 39% year-over-year to $5.4 billion, driven by record CPU and GPU sales, highlighting strong demand in the AI sector, with eight of the ten largest AI companies now utilizing its GPUs.
- Client and Gaming Segment Performance: Revenue from the client and gaming segments rose 34% and 50% respectively, totaling $3.9 billion, although the company anticipates a meaningful decline in semi-custom revenue in 2026, which could impact future growth potential.
- Overall Financial Performance: AMD's total revenue for Q4 climbed 34% year-over-year to $10.27 billion, with gross margin increasing to 54%, and adjusted earnings per share rising 40% to $1.53, surpassing market expectations and demonstrating robust performance amid high investor expectations.
See More
Investment Opportunities and Risks in AI Stocks
- Market Performance of AI Stocks: In recent years, AI stocks have driven the S&P 500 to three consecutive years of gains, with companies like Nvidia and Palantir reporting double and triple-digit revenue growth, showcasing the revolutionary potential of AI technology across various sectors.
- Valuation Concerns Intensify: Despite strong performance, the S&P 500 Shiller CAPE ratio has reached historical highs, raising investor concerns about a potential AI bubble, leading some to rotate out of AI and tech stocks.
- Sustained Demand: Chip manufacturers like Taiwan Semiconductor and AMD reported double-digit revenue growth, indicating strong demand for AI products, particularly as TSMC's close collaboration with cloud providers offers clear insights into market demand.
- Long-Term Investment Opportunity: Although AI stocks have recently declined, analysts suggest this could represent a once-in-a-decade buying opportunity, especially as AI technology remains in its early stages, with significant future applications in robotics, drug discovery, and autonomous vehicles.
See More
Tech Stocks Retreat Amid AI Concerns
- Tech Stock Retreat: Recent declines in tech stocks, particularly AI names like Nvidia and Palantir, stem from investor concerns over valuations and the potential impact of AI on software businesses, indicating a cautious market sentiment.
- AI Market Potential: Despite risks, AI technology is viewed as a key driver for future growth, with companies like Taiwan Semiconductor and AMD reporting double-digit revenue gains, suggesting strong demand for AI products and the likelihood of increased investment.
- Investor Sentiment Shift: The S&P 500 Shiller CAPE ratio has reached historical highs, raising fears of an AI bubble and leading to declines in certain software and AI stocks, reflecting skepticism about sustained growth.
- Long-Term Investment Opportunity: Although tech stocks are experiencing short-term pullbacks, analysts believe this could represent a once-in-a-decade buying opportunity, especially as AI technology is still in its early stages of real-world application, indicating significant growth potential ahead.
See More
US Stocks Rise on Monday as Tech Stocks Rebound
- Market Recovery: The S&P 500 Index rose by 0.47% on Monday, with the Dow Jones Industrial Average hitting an all-time high, indicating a strong recovery in the market following rebounds in tech stocks and chipmakers, reflecting investor confidence in economic recovery.
- Precious Metals Surge: Mining stocks rallied as gold prices increased by 2% and silver surged over 6%, with Coeur Mining and Hecla Mining gaining more than 7% and 5% respectively, highlighting the positive impact of strong performance in the precious metals market on related stocks.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth projected at 8.4%, which is likely to further boost market sentiment and enhance investor confidence.
- Economic Data Focus: The market will closely watch upcoming economic data releases, including the employment cost index and retail sales figures, which are expected to significantly influence future monetary policy and market trends.
See More
AMD Reports Strong Earnings but Growth Rate Slows
- Earnings Highlights: AMD's recent quarterly earnings report revealed a 34% year-over-year revenue increase to $10.3 billion, although the growth rate has declined from 36% in the previous quarter, indicating strong market performance following the launch of AI chips.
- Future Outlook: The company anticipates a further decline in growth rate to 32% for the upcoming quarter, even with $100 million in Instinct MI308 chip sales to China, raising concerns among investors about its long-term growth prospects.
- Market Competition: While AMD's growth rate above 30% remains impressive, it pales in comparison to Nvidia's 60% growth rate, which could diminish AMD's market appeal and investment attractiveness.
- Investment Risks: With AMD trading at approximately 80 times its earnings, the slowdown in growth may expose investors to short-term volatility risks, particularly if market conditions worsen, necessitating a reassessment of its investment value.
See More
AMD Appoints New Chief Marketing Officer
- Executive Appointment: AMD has appointed Ariel Kelman as its new Senior Vice President and Chief Marketing Officer, bringing three years of experience from Salesforce, which will enhance AMD's expansion in the data center market.
- Market Strategy: With prior roles as CMO at Oracle and head of marketing at Amazon Web Services, Kelman is expected to drive growth in AMD's market share in high-performance and AI solutions by enhancing brand image and customer engagement.
- Leadership Change: Kelman replaces John Taylor, who served at AMD for 19 years and was CMO for eight years before retiring last year, indicating a strategic shift aimed at infusing new energy and innovative thinking into the company.
- Future Outlook: Kelman aims to leverage AMD's unique product advantages to capture the massive AI data center market opportunity, further driving business growth and enhancing the company's competitive position.
See More
AMD Reports Strong Q4 Growth and Positive 2026 Guidance
- China Market Contribution: AMD's Q4 sales of $390 million in GPUs to China significantly boosted results, although management forecasts only $100 million in revenue for Q1, indicating potential volatility in future sales from this dynamic market.
- Data Center Revenue Growth: AMD's data center revenue surged 39% year-over-year to $5.4 billion, driven by record CPU and GPU sales, highlighting strong demand in the AI sector, with eight of the ten largest AI companies now utilizing its GPUs.
- Client and Gaming Segment Performance: Revenue from the client and gaming segments rose 34% and 50% respectively, totaling $3.9 billion, although the company anticipates a meaningful decline in semi-custom revenue in 2026, which could impact future growth potential.
- Overall Financial Performance: AMD's total revenue for Q4 climbed 34% year-over-year to $10.27 billion, with gross margin increasing to 54%, and adjusted earnings per share rising 40% to $1.53, surpassing market expectations and demonstrating robust performance amid high investor expectations.
See More
Investment Opportunities and Risks in AI Stocks
- Market Performance of AI Stocks: In recent years, AI stocks have driven the S&P 500 to three consecutive years of gains, with companies like Nvidia and Palantir reporting double and triple-digit revenue growth, showcasing the revolutionary potential of AI technology across various sectors.
- Valuation Concerns Intensify: Despite strong performance, the S&P 500 Shiller CAPE ratio has reached historical highs, raising investor concerns about a potential AI bubble, leading some to rotate out of AI and tech stocks.
- Sustained Demand: Chip manufacturers like Taiwan Semiconductor and AMD reported double-digit revenue growth, indicating strong demand for AI products, particularly as TSMC's close collaboration with cloud providers offers clear insights into market demand.
- Long-Term Investment Opportunity: Although AI stocks have recently declined, analysts suggest this could represent a once-in-a-decade buying opportunity, especially as AI technology remains in its early stages, with significant future applications in robotics, drug discovery, and autonomous vehicles.
See More
Tech Stocks Retreat Amid AI Concerns
- Tech Stock Retreat: Recent declines in tech stocks, particularly AI names like Nvidia and Palantir, stem from investor concerns over valuations and the potential impact of AI on software businesses, indicating a cautious market sentiment.
- AI Market Potential: Despite risks, AI technology is viewed as a key driver for future growth, with companies like Taiwan Semiconductor and AMD reporting double-digit revenue gains, suggesting strong demand for AI products and the likelihood of increased investment.
- Investor Sentiment Shift: The S&P 500 Shiller CAPE ratio has reached historical highs, raising fears of an AI bubble and leading to declines in certain software and AI stocks, reflecting skepticism about sustained growth.
- Long-Term Investment Opportunity: Although tech stocks are experiencing short-term pullbacks, analysts believe this could represent a once-in-a-decade buying opportunity, especially as AI technology is still in its early stages of real-world application, indicating significant growth potential ahead.
See More
US Stocks Rise on Monday as Tech Stocks Rebound
- Market Recovery: The S&P 500 Index rose by 0.47% on Monday, with the Dow Jones Industrial Average hitting an all-time high, indicating a strong recovery in the market following rebounds in tech stocks and chipmakers, reflecting investor confidence in economic recovery.
- Precious Metals Surge: Mining stocks rallied as gold prices increased by 2% and silver surged over 6%, with Coeur Mining and Hecla Mining gaining more than 7% and 5% respectively, highlighting the positive impact of strong performance in the precious metals market on related stocks.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth projected at 8.4%, which is likely to further boost market sentiment and enhance investor confidence.
- Economic Data Focus: The market will closely watch upcoming economic data releases, including the employment cost index and retail sales figures, which are expected to significantly influence future monetary policy and market trends.
See More
AMD Reports Strong Earnings but Growth Rate Slows
- Earnings Highlights: AMD's recent quarterly earnings report revealed a 34% year-over-year revenue increase to $10.3 billion, although the growth rate has declined from 36% in the previous quarter, indicating strong market performance following the launch of AI chips.
- Future Outlook: The company anticipates a further decline in growth rate to 32% for the upcoming quarter, even with $100 million in Instinct MI308 chip sales to China, raising concerns among investors about its long-term growth prospects.
- Market Competition: While AMD's growth rate above 30% remains impressive, it pales in comparison to Nvidia's 60% growth rate, which could diminish AMD's market appeal and investment attractiveness.
- Investment Risks: With AMD trading at approximately 80 times its earnings, the slowdown in growth may expose investors to short-term volatility risks, particularly if market conditions worsen, necessitating a reassessment of its investment value.
See More
AMD Appoints New Chief Marketing Officer
- Executive Appointment: AMD has appointed Ariel Kelman as its new Senior Vice President and Chief Marketing Officer, bringing three years of experience from Salesforce, which will enhance AMD's expansion in the data center market.
- Market Strategy: With prior roles as CMO at Oracle and head of marketing at Amazon Web Services, Kelman is expected to drive growth in AMD's market share in high-performance and AI solutions by enhancing brand image and customer engagement.
- Leadership Change: Kelman replaces John Taylor, who served at AMD for 19 years and was CMO for eight years before retiring last year, indicating a strategic shift aimed at infusing new energy and innovative thinking into the company.
- Future Outlook: Kelman aims to leverage AMD's unique product advantages to capture the massive AI data center market opportunity, further driving business growth and enhancing the company's competitive position.
See More
