Advanced Micro (AMD) Hits 52-Week High on GPU Adoption
Share price of Advanced Micro Devices, Inc. AMD rallied to a new 52-week high of $12.08, eventually closing a tad lower at $12.07 on Dec 27. This represents a phenomenal one-year return of 286%, over the Zacks Electronics Semiconductors industry’s return of 48.6% during the same period.
Advanced Micro has a market cap of $10.73 billion and it carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
AMD’s reported licensing deal with Intel INTC the company to gain more traction in the GPU space and close the market share gap with close rival NVIDIA NVDA.
In this regard, we note that AMD’s Radeon Pro GPUs are in demand, as the company announced a partnership with online retail giant Alibaba for the supply of GPUs for its cloud services.
AMD’s FirePro server GPUs have also been selected by Alphabet Inc.'s GOOGL Google to power its cloud platform in 2017, which again indicates the growing adoption of the company’s products.
However, increased costs related to product introductions are likely to impact the company’s near-term profitability.
ADV MICRO DEV Price and Consensus
ADV MICRO DEV Price and Consensus | ADV MICRO DEV Quote
Estimate Revisions
The Zacks Consensus Estimate for AMD’s current year has remained stable at a loss of 24 cents over the last 60 days.
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