AMD stock has underperformed but shows growth potential in data center and client segments.

From Nasdaq: 2024-08-01 11:05:36

Advanced Micro Devices (AMD) stock has underperformed, down 2% year-to-date compared to the S&P 500’s 15.8% return and Nvidia’s 140% surge. Despite a diverse product portfolio, lower growth rates have limited AMD’s stock upside. This, combined with tough competition, has affected financial performance and market share in AI.

While facing challenges, AMD delivered strong Q2 results, showing revenue growth and higher GPU shipments. The company raised its 2024 data center GPU revenue target to over $4.5 billion. This growth outlook presents an attractive opportunity for investors in the second half of 2024.

AMD’s growth potential in the Data Center and Client segments is driving revenue acceleration. With demand for next-generation processors and expanding customer pipeline, AMD has opportunities for future growth. Strategic investments, acquisitions, and focus on AI sector position AMD well for success in computing platforms.

Analysts view AMD stock optimistically, with a consensus rating of “Strong Buy” and an average price target of $197.78, suggesting a potential upside of 37%. This positive sentiment is based on AMD’s solid performance, growth prospects, and strategic positioning in the market.



Read more at Nasdaq: 6 Reasons Why I’ll Buy AMD Stock for 2H 2024