1 Semiconductor Giant to Consider Buying Today
After struggling in the early days of 2022, shares of semiconductor giant Advanced Micro Devices (NASDAQ: AMD) has recovered much of its losses in the past few days. Investor sentiment for the company has improved dramatically after stellar fourth-quarter earnings results (ended Dec. 31, 2021). Revenues jumped 49% year over year to an all-time quarterly high of $4.8 billion, while net income rose by 76% year over year to $1.1 billion.
AMD has managed to consistently surpass consensus estimates for the past seven quarters, even in times of constrained chip supply. The company has also given very strong guidance for fiscal 2022 -- revenues are expected to grow 31% year over year to $21.5 billion, and non-GAAP (adjusted) gross margin to reach 51%. With AMD investing $1 billion in supply chain capacity expansions and incremental supply expected to come online in 2022, chances of the company meeting its fiscal 2022 guidance remain quite high. Not surprisingly, many Wall Street analysts have reiterated their "buy" ratings and raised the target price for the stock.
Let's drill down on some key reasons AMD is being touted as an attractive investment in 2022.
Source Fool.com
