Hot tech company Advanced Micro Devices (NASDAQ:AMD), or AMD, has hit new highs in 2021. AMD stock was up 68% last year and it could break out into a new all-time high soon.
As the company prepares to close the much-hyped Xilinx (NASDAQ:XLNX) deal this quarter, it is ready to start the new year on a strong note. AMD stock was trading at $94 last year and was as high as $142 yesterday. Any dip in the stock is only temporary, and it is one to hold for the long term.
The company’s strong growth and fast-increasing revenue attracts investors to the stock. AMD is a chip stock that has a long way to go in the future, and many catalysts are working for it.
The company is known for its graphics processing units (GPUs) and central processing units (CPUs), which have led to impressive revenue and sales numbers. It is also growing across its data center business, gaming and personal computing applications. Let’s dig deeper into the catalysts working for AMD stock.
Contracts That Supercharge AMD Stock Growth
Getting this deal is a huge move for AMD. Meta plans to spend up to $34 billion in capital expenditures in 2022. It has already shown it is a stronghold in the industry and it will continue to dominate.
AMD held a 16% share of the server processor market at the end of the third quarter, and it is only going to grow in the coming months. Meta has one of the largest data center operations in the U.S., so this deal is going to benefit AMD in the long term.
Furthermore, the company also has a contract with Tesla (NASDAQ:TSLA) to use AMD processors in the vehicle manufacturer’s Model Y. Tesla is already using AMD chips for other models. This is only happening in China for now, but the switch could happen with vehicles in other countries.
The move is proof that AMD promises strong performance and excellent results. With more and more companies opting for its chips, the company will continue to expand throughout 2022.
AMD’s Impressive Product Line
Advanced Micro Devices recently announced new products for the year. The company will start 2022 with more than 30 new processors, which will drive growth in the PC segment.
These new products were announced by the AMD President CEO at the Product Premier Livestream. The company also shared that it expects more than 200 premium AMD-powered laptops to be available this year, including more than 20 AMD Advantage laptops designed for gaming.
The new lineup of processors has set the stage for 2022 as the company prepares to dominate the market. AMD stock will continue to rise in the coming year as the demand for its premium products keeps growing.
All in all, Advanced Micro Devices is a solid company with a strong presence in the market. It is constantly expanding and has partnered with top companies in the tech and automobile industry, which will have an impact on its bottom line.
I have written about AMD stock in the past, and I am still of the opinion that it is not just a great buy, but one of the best stocks to own this year. Considering the company’s strong history and expansion of its market share, AMD has a long way to go.
As it enters 2022 with impressive contracts and a wide range of premium products, AMD stock is ready to soar higher. Once the Xilinx merger is complete, there will be no stopping the company’s growth.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.