Advanced Micro Devices, Inc.’s stock price dips to $165.83, marking a 8.26% decline: Is it time to buy or bail?

Advanced Micro Devices, Inc. (AMD)

165.83 USD -14.94 (-8.26%) Volume: 87.67M

Advanced Micro Devices, Inc.’s stock price stands at 165.83 USD, experiencing a trading session drop of -8.26%, with a robust trading volume of 87.67M. Despite the recent dip, AMD’s stock still boasts a positive YTD change of +12.50%, showcasing its resilience in the market.

Latest developments on Advanced Micro Devices, Inc.

Advanced Micro Devices (NASDAQ:AMD) has been making headline news due to a series of events impacting its stock price. The robust financial performance of AMD has been contributing to its strong stock, while speculation about a secret Artificial Intelligence (AI) chip in the works has also been creating a buzz. However, the stock took a hit due to a slump in AI stocks and the Federal Reserve’s hawkish stance. Despite this, AMD’s stock still managed to outperform competitors on a strong trading day. The company has also been cautioning shareholders about an unsolicited mini-tender offer. With a positive rating from Susquehanna and new investments from Trust Point Inc., the future growth prospects of AMD seem promising.

Advanced Micro Devices, Inc. on Smartkarma

According to recent analyst coverage on Smartkarma, Advanced Micro Devices (AMD) is experiencing significant growth in its data center and client segments. This is largely due to the company’s innovative products, such as the Instinct AI accelerators and EPYC server CPUs, which have attracted strong demand from various customer groups. In fact, AMD’s data center sales have seen a significant acceleration throughout 2023, resulting in record annual sales and strong financial performance in the fourth quarter. This growth is expected to continue, with analysts forecasting a potential further upside in 2024.

One of the top independent analysts on Smartkarma, William Keating, also believes that the party is just getting started for AMD. In his recent report, he highlights the company’s impressive fourth quarter results, which saw revenues of $6.2 billion and a 10% year-over-year increase. He also forecasts a potential growth of over 70% in the data center segment in 2024, driven by AMD’s market share growth and entry into the AI acceleration market.

However, there are some concerns about AMD’s future revenue performance, as highlighted by another independent analyst Baptista Research. Despite achieving strong financial results in the fourth quarter, the company’s FY23 revenues are expected to decline by approximately 4% compared to the previous year. However, Baptista Research believes that this decline will be temporary, as the company is set to re-enter the AI acceleration market and regain its data center market share, which could lead to another party for AMD in 2024.

A look at Advanced Micro Devices, Inc. Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Advanced Micro Devices, Inc. (AMD) is a company that makes computer chips and other electronic devices. They sell these products to other companies and also provide services to help make and test them. They have customers all over the world.

The long-term outlook for Advanced Micro Devices looks promising, according to the Smartkarma Smart Scores. These scores range from 1 to 5, with higher scores indicating a better outlook for the company. AMD scores a 3 in value, meaning their products are reasonably priced and could potentially bring in good profits. However, their dividend score is only a 1, indicating they do not pay out dividends to shareholders. In terms of growth, they score a 2, meaning they have potential for growth in the future. The company also scores a 3 in resilience, meaning they have a strong foundation to withstand market fluctuations. Lastly, AMD scores a perfect 5 in momentum, indicating they have been performing well in recent times. Overall, the Smartkarma Smart Scores suggest a positive outlook for Advanced Micro Devices in the long-term.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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