It was productive in the past five years Advanced micro devices(NASDAQ: AMD) Investors are worth about $ 2,200 as a $ 1,000 investment in a shareholder.
However, in order to put everything in the prospect, 118% jump in the Shares of AMD in the past five years is lower than 178% jump Phlx semiconductor sector index in the same period. Last year, it was especially difficult for AMD investors, because the share shed 41% of the cost during this period. This large drop can be caused by the fact that AMD cannot capitalize the demand of the AMD Artificial Intelligence (AI) Chips, a market where Arch-opponent is Nvidia established a dominant position.
However, the latest results of AMD have become strong and have more than one catalyst that can help the company revive the stock market over the next five years. Looking closer to the potential growth drivers of AMD and why we are going to check that it can be a good idea to buy and save this stock for the next five years.
AMD’s financial performance has been mixed in the past five years. Income of the company’s income and profit in 2020, 2021 and 2022 in the 2022 graphics cards (on computers) and individual computers (computers), violated the sub-line increase after a strong start.
Because this There was a request for PCs After a strong sale of Roman Coronavirus Pandemia. The AMD was already inventory in his hand and wrote it, which caused a sharp decline in the company’s profit. Meanwhile, the company’s Information Center case was in a delicate form during this period, because after the Server CPU sharing Intel.
But then, the sales of gaming consoles Sony and MicrosoftStrengthening the AMD’s semi-special processors, began to maturity, and this technological giants caused less orders. The fact that AMD is behind NVIDIA on the market for graphics cards with a total of 10%; It’s easy to see why the company is fighting for the traction of the game.
Thus, the mixed performance of various establishments of AMD has been aggravated in the stock market in the past five years. However, the good news is that all the segments discussed above are strong enough to grow strong growth over the next five years, and the AMD Fund is strong.
Over the next five years of AMD, it will depend on the health of the main segments such as performance, game, data centers and PCs. The good party is likely to grow secular thanks to different catalysts of all these business segments.
The company’s game should benefit from the arrival of new gaming consoles from Microsoft and Sony. The existing generation of console is about five years old. It is a new one in two to three years in two to three years, a new one in New and Microsoft’s history is released every seven and a few-and-half to a new generation.
Both Soni and Microsoft are expected to release the next generation consoles in 2026 or 2027. This can give a fine impetus of AMD’s semi-special chip work as selected by console manufacturers to present processors for the next gene consoles.
Switching to PC from the game AMD has already begun to witness a solid traction in this market. The company’s customer-segment revenues increased by an eczcinal 52% in 2024, “Strong demand for AMD Ryzen processors on desktop and mobile AMD Ryzen processors” increased by $ 7.1 billion. Over the next five years, the prospects of the PC market looks bright due to the arrival of a generative AI.
According to an estimate, the income of the AI PC market is expected to jump to almost 5x until 2024-2030. This is widespread, especially for the long-term prospects of AMD, especially for sharing in a larger PC processor market. According to mercury research, according to the Civury study, according to Civury, the customer, which was controlled, ended in 2024 with about 25% of the CPU market.
The customer grew up in a faster share of the PC market, increased by scoring 8.4 percent a year. It improves the price of the AMD’s PC Processor market because its share is better improving the share of the unit. Moreover, it will not be surprising to see that a new desktop CPU has earned a new desktop CPU for the next year.
Thus, the scene seems to be established in the next five years, the AMD’s game and PC segments are built for healthy growth. At the same time, the company’s information center is becoming more improving, although the AI GPU (Graphic Processing Unit) market is playing a second violin in NVIDIA. AMD’s Information Center revenues, last year, hit a record of a record of a record of both server CPUs and the powerful sales of GPUs.
The company has sold a $ 5 billion worth of data center GPU in 2024. The AMD Information Center forecasts the GPU’s business center will increase in “ten billions of ten billions in the coming years.” In fact, AMD can make a small part of this market in the corner in the corner in the corner in the GPU in the corner.
In the end, the AMD may conclude that it was built for prominent gain increase in the next five years. Therefore, buy these shares, currently, Yahoo! Finance.
A pole ratio of less than 1 is an estimate of the expected growth in the expected growth and AMD is a low price from this threshold. Thus, investors who want to receive an increase in attractive levels can consider adding AMD to portfolios. This fund is placed for an effective long-term reverse.
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Sarsh chauhan There is no position in any of the marked shares. Motley Fool recommends advanced micro installations, Intel, Microsoft and Nvidia and recommends. Motley Foox recommends the following options: Long number 2026 $ 395, Short February 2025 Calls in Intel and Short January 2026 at $ 405 to Microsoft. Motley Fool has a Disclosure Policy.
