From Nasdaq.: 2024-05-10 09:06:13

Semiconductors, vital for tech advancements, see a surge in demand for GPUs due to AI growth. AMD, a key player, faced a 32.96% stock drop since its peak at $227.30. Is this a good time to invest in the tech giant amid high GPU demand?
Despite AMD’s recent stock dip, the company has a market cap of $248.3 billion and has excelled in the CPU and GPU markets. Its shares surged by 60.3% in the past year, outperforming the S&P 500 and S&P Semiconductor SPDR. Priced at 9.71 times forward earnings, AMD appears undervalued compared to peers.
AMD reported Q1 earnings meeting Wall Street estimates, with revenue at $5.5 billion and adjusted EPS at $0.62. Data center revenue grew by 80% to $2.3 billion, driven by the MI300 series, while client segment revenue increased by 85% to $1.4 billion. AMD anticipates a 4% sequential revenue increase in Q2, with a projected $4 billion in AI chip sales for the year.
Analysts expect AMD’s EPS to grow to $2.62 in fiscal 2024 and predict a 31.7% annual increase, followed by another 67.9% growth to $4.40 in fiscal 2025. Despite trimmed price targets post-earnings, AMD maintains a consensus “Strong Buy” rating among analysts, with a potential upside of 26.2% to $192.37 per share.



Read more at Nasdaq.: Down 33% From Highs, Is AMD Stock a Bargain Buy Right Now?