Based in California, Advanced Micro Devices (NASDAQ:AMD) is among the world’s biggest chipmakers. In a time when there’s a huge demand for tech components and Advanced Micro Devices has a tremendous product lineup, the bull case for AMD stock is quite compelling now.
By now, you’ve surely heard about all of the reasons to avoid technology stocks. These include supply-chain issues, high inflation and a hawkish Federal Reserve.
All of those factors have contributed to a fire sale in some top-quality tech stocks. Among the best picks today is Advanced Micro Devices, which has demonstrated financial strength and continues to release some of the industry’s best products.
| AMD | Advanced Micro Devices | $86.86 |
What’s Happening with AMD Stock?
When AMD stock traded at $164.46 in November of last year, it was unimaginable that the share price would get cut in half. Yet, here we are and the stock recently fell to the $81 level.
This decline has brought Advanced Micro Devices’ trailing 12-month price-to-earnings ratio down to 31.26. In other words, the idea that technology stocks are always overpriced, is clearly a misconception.
Besides, there’s simply no denying that Advanced Micro Devices is firing on all cylinders, financially speaking. During 2022’s first quarter, the company posted impressive across-the-board growth. On a year-over-year basis, Advanced Micro Devices’ revenue was up 71%, gross profit up 78%, net income up 42% and earnings per share up 24%.
Looking ahead to full-year 2022, Advanced Micro Devices is targeting approximately 60% year-over-year sales growth as well as 54% gross margin. Not only that, but the company also anticipates compound annual sales growth of 20% over the next three to four years.
Mapping a Strategy for Innovation
However, let’s not focus exclusively on fiscal figures. After all, the real strength of Advanced Micro Devices lies within its innovative product line.
Not long ago, Advanced Micro Devices disclosed its road map for new hardware and software products. With this, Chair and CEO Lisa Su hopes the company will “capture a larger share” of a “diverse $300 billion” product market.
The scope of Advanced Micro Devices’ product lineup is staggering. Gamers should be excited about AMD’s Radeon RX Series graphics with AMD Ryzen processors. Meanwhile, desktop computer users can look forward to super-fast “Zen 4”-based Ryzen 7000 Series processors.
Furthermore, Advanced Micro Devices recently introduced a line of processors called the Ryzen Embedded R2000 Series. These high-performance processors reportedly can “power up to four independent displays in brilliant 4K resolution.”
What You Can Do Now
Time after time, Advanced Micro Devices continues to innovate in the tech-component market. The company’s latest offerings are, as usual, a major threat to the competition.
That’s great news if you’re invested in AMD stock. Also, the shareholders should be encouraged by Advanced Micro Devices’ impressive financial growth and optimistic forward guidance.
Thus, the bull case is undeniable as Advanced Micro Devices remains a superior chipmaker that offers outstanding shareholder value.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Louis Navellier had a long position in AMD. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
