AMD's AI business is performing well with increased chip demand and revenue growth.

From Nasdaq: 2024-05-02 22:15:19

Advanced Micro Devices (AMD) reported Q1 2024 results, with $123 million in net income and $5.47 billion in revenue, up 2% YoY. AI chip demand boosted by 80% in sales to $2.3 billion, with a projection of $4 billion for the year. Gaming segment revenue dipped 48%, while gains were seen in client sales and server CPU market share.

AMD stock saw an 80% increase since January 2021, outperforming the S&P 500. Despite fluctuations, AMD underperformed the S&P in 2022. The High Quality Portfolio outperformed the S&P consistently. With uncertainties in the macroeconomic environment, the future performance of AMD remains uncertain compared to the S&P 500.

Despite trading at 44x consensus 2024 earnings, AMD stock rallies due to PC market recovery and AI demand. Valued at $163 per share, slightly ahead of the market price. Returns as of May 2024 show a significant increase over the years. For investment opportunities, consider Trefis Market-Beating Portfolios and Price Estimates for more insights.



Read more at Nasdaq: How Is AMD’s Fledgling AI Business Doing?