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Advanced Micro Devices, Inc. (AMD), headquartered in Santa Clara, California, is a global leader in the semiconductor industry. With a market cap of $240.12 billion, AMD plays a pivotal role in the technology sector by designing and developing high-performance computing, graphics, and visualization technologies. The company's diverse product portfolio includes processors, graphics cards, and other computing solutions that power everything from personal computers to large-scale data centers.
Companies valued at $200 billion or more are typically classified as "mega-cap" stocks and Advanced Micro Device fits this category, highlighting its substantial market presence, growth potential, and impact within the technology sector. As a global leader in the semiconductor industry, AMD exemplifies the agility and innovation of a large-cap company, driven by its cutting-edge product offerings, strategic partnerships, and commitment to advancing computing and graphics technologies.
AMD shares are trading 39.8% below their 52-week high of $227.30, which they hit on Mar. 8. AMD has declined 16.3% over the past three months, underperforming the Vanguard Mega Cap ETF (MGC), which has gained 4.8% over the same time frame.
In the longer term, AMD is down 7.1% on a YTD basis. However, the shares have gained 25.1% over the past 52 weeks. In comparison, the MGC has gained 17.4% in 2024 and rallied 24.3% over the past year.
To confirm the recent bearish price trend, AMD has been trading below its 200-day moving average since mid-July and its 50-day moving average recently.
AMD strengthened its AI chip market position by acquiring ZT Systems for $4.9 billion. Advanced Micro Devices stock saw a 4.4% boost on Jul. 31, driven by a strong Q2, with data center revenue surging 115% and over $1 billion in sales of its new Instinct Mi300 GPUs.
Highlighting the contrast in performance, AMD's competitor, NVIDIA Corporation (NVDA), has significantly outperformed the stock and the border sector. NVDA has gained 118.1% on a YTD basis.
Analysts are optimistic about AMD's prospects despite its weak price performance. The stock has a consensus rating of "Strong Buy" from 36 analysts in coverage. The mean price target of $192.88 reflects a 40.9% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
