AMD
In October 2020, AMD announced its $ 35 billion acquisition of Xilinx. The company plans to complete the deal by the end of 2021. AMD will be able to leverage Xilinx's capabilities in a variety of market segments from data center to gaming, PC, communications, automotive, industrial, aerospace and defense. Data centers are a key growth area Xilinx expects its data center to grow at its fastest pace (36% CAGR through 2024).
Another key factor behind the stock's gains is a contract for the supply of chips for Sony and Microsoft's next-generation gaming consoles, shipments are forecast to grow 50% in 2021. According to Ampere Analysis, the number of PlayStation 5 and Xbox will reach more than 111.6 million units by 2024, which is more than 2.5 times more than in the same previous period.
The next confirmation of the growth in the value of the Shares is the fact that AMD has increased its market share from 11.6% to 20.2% in two years and will be able to continue to use its advantage while maintaining the dynamics. The company demonstrates high rates of revenue growth, the average revenue growth over 5 years is 20.4%. According to analysts' forecasts, AMD's revenue will grow by 30% every year for the next 3 years. Over the long term, AMD predicts the company is on track to achieve its revenue growth target of 20% CAGR over 5 years.
The last and key point is the fact that over the past ten years AMD's share price has been more dependent on revenue than profit. Given the expected revenue growth, AMD's stock price could easily hit $ 120 by the end of 2021. In terms of profitability, its average gross and net profit is 36.6% and 4.7%, respectively.
The technical picture also tells us about the upcoming growth of shares in the near future. The chart clearly shows a mirrored level at around 87 USD, with a false breakout, with a strong rebound on good volume, which confirms the interest of large traders in the company. The stock has outperformed the S @ P 500 and Nasdaq over the past week. I recommend buying in the medium term, entry and stop points depend on your trading strategy.
Share your opinion in the comments and support the idea with likes.
Thank you for your support!
Another key factor behind the stock's gains is a contract for the supply of chips for Sony and Microsoft's next-generation gaming consoles, shipments are forecast to grow 50% in 2021. According to Ampere Analysis, the number of PlayStation 5 and Xbox will reach more than 111.6 million units by 2024, which is more than 2.5 times more than in the same previous period.
The next confirmation of the growth in the value of the Shares is the fact that AMD has increased its market share from 11.6% to 20.2% in two years and will be able to continue to use its advantage while maintaining the dynamics. The company demonstrates high rates of revenue growth, the average revenue growth over 5 years is 20.4%. According to analysts' forecasts, AMD's revenue will grow by 30% every year for the next 3 years. Over the long term, AMD predicts the company is on track to achieve its revenue growth target of 20% CAGR over 5 years.
The last and key point is the fact that over the past ten years AMD's share price has been more dependent on revenue than profit. Given the expected revenue growth, AMD's stock price could easily hit $ 120 by the end of 2021. In terms of profitability, its average gross and net profit is 36.6% and 4.7%, respectively.
The technical picture also tells us about the upcoming growth of shares in the near future. The chart clearly shows a mirrored level at around 87 USD, with a false breakout, with a strong rebound on good volume, which confirms the interest of large traders in the company. The stock has outperformed the S @ P 500 and Nasdaq over the past week. I recommend buying in the medium term, entry and stop points depend on your trading strategy.
Share your opinion in the comments and support the idea with likes.
Thank you for your support!
Note
Fundamentally, AMD shares are upside. Technically, the points have shifted due to the general market correction.I entered yesterday at 74.70, I am working out the retreat
Хочешь хороших денег – умей выжидать
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Хочешь хороших денег – умей выжидать
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.