Is AMD Stock Still a Buy in February?
With shares up 123% over the last 12 months, Advanced Micro Devices (NASDAQ: AMD) has been a big beneficiary of the artificial intelligence (AI) trend. But unlike rival Nvidia, which has seen revenue and profits surge, AMD's rally relies on future expectations more than current results. Let's discuss the company's recently reported fourth-quarter earnings and explore how its chip business could evolve over the coming years.
AMD's fourth-quarter earnings report was a mixed bag. Total revenue grew by 10% year over year to $6.17 billion on strength in its data center segment, which rose 38%. The company recently released the latest versions of its AMD Instinct graphics processing units (GPUs) designed for training and running AI applications. And these products likely contributed to the healthy expansion in the period.
With that said, AMD sells more than just data center chips. Other segments like gaming and embedded hardware fell 17% and 24%, respectively, leading to an overall lackluster showing. The company's future guidance also left much to be desired.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 81 Buy predictions and 2 Sell predictions.
With a target price of 176 € there is a positive potential of 36.5% for Advanced Micro Devices Inc. compared to the current price of 128.94 €.
