AMD Q1 ‘pretty good’, stock ‘reasonably valued’ – Pro

Investing
April 10, 2023
0

Advanced Micro Devices (AMD) has reported a strong first quarter, with revenue up 93% year-over-year to $3.45 billion, beating Wall Street estimates. The company’s earnings per share (EPS) also exceeded expectations, coming in at $0.52, up from $0.18 in the same period last year.

The strong performance was driven by the company’s Computing and Graphics segment, which saw revenue increase 46% year-over-year to $2.10 billion, thanks to strong demand for its Ryzen processors and Radeon graphics cards. AMD’s Enterprise, Embedded and Semi-Custom segment also performed well, with revenue up 286% year-over-year to $1.35 billion, driven by strong sales of its EPYC server processors.

Despite the strong results, some analysts remain cautious on AMD’s stock, which has risen more than 80% over the past year. However, one analyst believes the stock is still “reasonably valued” given the company’s growth prospects.

“AMD’s Q1 results were pretty good, and the company’s growth prospects remain strong,” said the analyst. “The stock has had a strong run over the past year, but I still think it’s reasonably valued given the company’s growth potential.”

AMD’s growth prospects are indeed strong, with the company set to benefit from several key trends in the semiconductor industry. These include the shift to cloud computing, the growth of artificial intelligence and machine learning, and the increasing demand for high-performance computing in industries such as gaming and data centers.

In addition, AMD is set to benefit from the ongoing chip shortage, which has led to increased demand for its products. The company has already announced plans to increase production capacity, which should help it capitalize on this trend.

Overall, while some investors may be cautious on AMD’s stock given its recent run-up, the company’s strong growth prospects and reasonable valuation make it an attractive investment opportunity for those with a long-term view.