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

Strong Growth Expectations

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

On the same day, the company stated that it expects to exceed a compound annual growth rate (CAGR) of %35 for annual revenue; achieve an increase of over %35 in non-GAAP operating margin; and 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 businesses are anticipated to grow by more than %10.

AMD Chairman and CEO Lisa Su said, “AMD is entering a new era of growth with our leading technology roadmaps and accelerating artificial intelligence momentum. With our broadest product portfolio and deepening strategic partnerships, AMD is uniquely positioned to lead the next generation of high-performance and AI-driven computers. We see a great opportunity for 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 a %61 increase in net income to $1.243 billion, up from $771 million in the same period last year. Additionally, revenues rose %35.5, increasing from $6.819 billion to $9.246 billion.

When sharing our views on investment opportunities, while considering AMD's potential, we believe that some AI stocks may offer higher returns and present limited downside risk.