AMD Shares on the Rise: 9% Increase with New Strategy!

Strong Growth Expectations

Advanced Micro Devices Inc. (NASDAQ:AMD) closed the trading day last Wednesday with a %9 increase, raising its stock price to $258.89. This rise occurred following the company's announcement of a new long-term strategy aimed at establishing a stronger foothold in the $1 trillion computer market.

In its announcement that day, the company stated its goal to exceed a compound annual growth rate (CAGR) of over %35; to achieve an increase in its operating margin of more than %35; and to target at least $20 in non-GAAP earnings per share.

Among its business segments, the data center segment is expected to grow at a CAGR of over %60, while the embedded and client gaming segments are projected to grow by more than %10.

AMD Chairman and CEO Lisa Su stated, “AMD is entering a new era of growth with our leading technology roadmaps and accelerating momentum in artificial intelligence. With our broadest product portfolio and deepening strategic partnerships, AMD is uniquely positioned to lead the next generation of high-performance and AI-driven computing. We see a tremendous opportunity to achieve sustainable, industry-leading growth. We have never been in a better position.”

In the third quarter of the year, Advanced Micro Devices Inc. (NASDAQ:AMD) reported that net income increased by %61 to $1.243 billion, compared to $771 million in the same period last year. Additionally, revenues rose by %35.5, increasing from $6.819 billion to $9.246 billion.

When sharing our views on investment opportunities, while considering the potential of AMD, we believe that some artificial intelligence stocks carry more promise for higher returns and limited downside risk.