At its Financial Analyst Day on June 9, AMD (NASDAQ: AMD) outlined its new strategy to deliver more growth. Their portfolio of high-performance adaptive computing products across the data center, embedded, client, and gaming markets should grow significantly.
Meanwhile, based on the presentation and data, market participants are concluding that AMD will see long-term revenue growth of 20% in the next three to four years.
Dr. Lisa Su, AMD’s chair and CEO, summed up her company’s role in the future of computing, where AMD already plays a significant role.
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“From the cloud and PCs to communications and intelligent endpoints, AMD’s high-performance and adaptive computing solutions play an increasingly larger role in shaping the capabilities of nearly every service and product defining the future of computing today.”
AMD chart and analysis
In short, year-to-date (YTD) AMD shares are down over 30%, being sold along with other tech names to start the year. Further, June trading sessions have seen a slight recovery, with shares trading now above the 20-day and 50-day Simple Moving Averages (SMAs).
Similarly, on Wall Street, analysts rate the shares a moderate buy, predicting that the average price in the next 12 months could reach $137.60, which is potentially an increase of 39.27% compared to the current trading price of $98.80.
Leaning on an acquisition
Equally important, the acquisition of Xilinx should help AMD with synergies; even Dr. Su confirmed the importance of the acquisition for capturing a larger share of the market.
“The close of our transformational acquisition of Xilinx and our expanded portfolio of leadership compute engines provide AMD with significant opportunities to deliver continued strong revenue growth with compelling shareholder returns as we capture a larger share of the diverse $300 billion market for our high-performance and adaptive products.”
To top things off, the company launched the largest brand campaign in its history, named “Together We Advance”, which puts focus on collaboration with partners, customers, and employees to create solutions to tough challenges.
All in all, AMD seems to be following a proven path to success by investing in development and synergies through acquisitions.
Share price, like most of the big tech, hasn’t been performing that well in 2022; yet, for long-term investors who believe AMD will continue to dominate, this could be a buying opportunity.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.