AMD Stock Trending Higher Despite Supply Delays from Samsung and TSMC

Advanced Micro Devices, Inc (AMD) has seen its stock prices climb this Tuesday, even in the face of deferred production timelines from two of its critical suppliers, Samsung Electronics Co (SSNLF) and Taiwan Semiconductor Manufacturing Co (TSM). This upward movement comes unexpectedly as these delays often signal potential trouble for technology firms reliant on the manufacturing capabilities of their partners.

Analysts' Revenue Projections

Despite the current challenges, market analysts have cast their projections regarding AMD's revenue, estimating it at around $22.63 billion for the fiscal year 2023. This figure is slightly down from the previous year's revenue of $23.6 billion. Nevertheless, the slight dip does not seem to deter investors, who continue to trade AMD stocks actively.

Bullish Sentiments Amidst Competition

In late December, a band of analysts from firms like Rosenblatt, Goldman Sachs, and B of A Securities have publicly shown their optimism towards AMD. They highlighted the strong potential for its MI300 Data Center GPU, which is expected to be widely adopted across cloud and enterprise sectors. The analysts believe that despite Nvidia Corp's (NVDA) prevailing market dominance, AMD stands a good chance of making significant inroads, particularly in the data center GPU market.

Goldman Sachs analyst Toshiya Hari sees a promising year ahead for AMD, especially in the realm of server CPUs. Similarly, B of A Securities analyst Vivek Arya spots an opportunity for AMD to capture between 5 and 10 percent of a market that's anticipated to swell to between $150 billion and $400 billion by FY27E. Arya emphasizes that this growth will be buoyed by AMD's success in the server CPUs alongside its advances in the lucrative accelerator market, where it competes against Intel Corp (INTC).

AMD's Stock Performance

Observing the year-to-date performance, AMD's stock has recorded a commendable 122% increase. When compared to Nvidia's impressive 245% surge and the Invesco QQQ Trust, Series 1 (QQQ) at 55%, AMD's growth signifies a robust position in a highly competitive market. Shares of AMD were last seen trading up by 1.18% at the price of $141.25.

While this development is intriguing, it is vital to remember that this article does not offer investment advice. Investors should conduct their due diligence before making investment decisions.

AMD, Stocks, Analysis