- Advanced Micro Devices (AMD) trading below $100 is a good chance to make your move.
- The company is investing heavily in research and development which will benefit it in the long term.
- An analyst believes AMD stock is a “Strong Buy.” I think the analyst is right and you should buy now.
It is not easy to remain bullish on Advanced Micro Devices (NASDAQ:AMD) stock at the moment. Considering the macroeconomic factors that have an impact on the stock, it is hard for investors to keep their faith in the company. While the long-term prospects look strong, 2022 may not be a great year for AMD. Those who invested in AMD stock in 2021 have seen a steep decline. The stock has gone from $150 in January 2022 to below $90 today. It is down 27% in the past six months and 4% over the past week.
However, I believe anything below $100 is a great buy. AMD stock has massive long-term potential and if you look at the big picture, it can generate solid returns for you. There is a huge upside potential you wouldn’t want to miss out on. With that in mind, let’s take a look at my view of AMD stock.
| AMD | Advanced Micro Devices | $84.91 |
Buy It Before the Results
AMD will announce the first-quarter results on May 3 and if it beats analyst expectations, the stock will soar. In the previous quarter, the company successfully managed to beat the estimates. The stock was up 10% after the results due to the positive 2022 outlook. It expects sales of $5 billion in the quarter driven by PC and server sales. For the whole year, the company expects sales of $21.5 billion, which is a 31% rise over the sales of 2021.
If you have been looking for a chance to take a position in AMD stock, it is a good idea to make the move before the results. It will give you a chance to make the most of the potential upside based on the numbers. I believe AMD will beat analyst expectations yet again and it will push the stock higher.
AMD Is Putting Money Where It Grows
Advanced Micro Devices is steadily making the right moves and investing in areas that will grow its money. The company’s research and development (R&D) spending has increased by 43.4% in 2021 and it stood at $811 million in the fourth quarter. This is a massive increase from the previous year and it shows that the company is well on its path to disrupting the tech space.
R&D spending is an investment in the future of the company and it is a sign that AMD takes innovation seriously and is well prepared for the future.
Besides the R&D spending, the company has also invested in Xilinx which will boost its portfolio in the coming years. This was the largest acquisition deal ever in the semiconductor segment and will put AMD in the spotlight. Further, the company recently announced the acquisition of Pensando which will help expand its data center capabilities. AMD’s management is prepared for the future and is making moves that will boost the revenue in the coming years. This is another reason to invest in AMD stock.
The Bottom Line on AMD Stock
Chris Caso, a Raymond James (NYSE:RJF) analyst, has a price target of $106 with a “Strong Buy” rating. The analyst sees a very attractive valuation since the shares are down over 40% year to date. AMD stock turned higher after this update and was up 2.89% The stock was already inching closer to the 10-month low and it does not make sense to sell it currently. If you already own the stock, it is best to hold to make the most of the potential upside.
I believe the stock is a strong player in the tech space and with the results due soon, it is a good time to invest. AMD stock will hit the $100 mark very soon.
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.
