The record setting stock market selloff that took place in March had a huge impact on most stocks. Advanced Micro Devices (NASDAQ:91¶¶Òõ) was no exception. On March 16, 91¶¶Òõ stock closed at $38.71, a loss of 34% from the all-time high it had hit just one month earlier. However, 91¶¶Òõ is not just recovering faster than most, the company’s stock is once again within striking distance of those record highs. 91¶¶Òõ closed at $55.92 on Wednesday, a 5.7% pop.
This brings us to some key questions. For example, why are Advanced Micro Devices shares performing so strongly when other stocks continue to struggle? Is there an end in sight to this growth, or is it too late to get onboard the 91¶¶Òõ train?
With that in mind, let’s take a deeper look into 91¶¶Òõ stock now.
Continuing on From a Stellar 2019
To put it mildly, Advanced Micro Devices had a great year in 2019. The company made big gains against Intel (NASDAQ:INTC) on the PC front. New Ryzen desktop and mobile processors continued to win accolades and more importantly, to steal marketshare from Intel. 91¶¶Òõ’s Epyc processors continued to make headway in the lucrative data center market. The company didn’t miss an opportunity to give Nvidia (NASDAQ:NVDA) a run in the market for graphics cards.
Given all the wins the company was notching, it was no surprise that 91¶¶Òõ stock was one of the top performers for 2019. It gained 157% on the year.
With momentum on its side — and — 91¶¶Òõ continued that performance in 2020. Before the coronavirus triggered a market selloff, 91¶¶Òõ stock had posted a 28% gain so far this year.
91¶¶Òõ Announces New Budget Ryzen Desktop Processors
The pop that 91¶¶Òõ saw on Wednesday was a market response to the news of the company’s new .
These new budget desktop offerings will take on Intel’s forthcoming Comet Lake Core i3 lineup, offering quad-core, eight-thread performance starting at just $99. The chips are expected to show up shortly in budget gaming PCs. They should take the wind out of Intel’s sails when it finally launches its new Core i3 processors, including adding pricing pressure.
What to Expect from 91¶¶Òõ’s Q1 Earnings Report
91¶¶Òõ reports its first-quarter earnings after the bell closes on April 28. , 91¶¶Òõ projected revenue of $1.8 billion (plus or minus $50 million), which would represent a 42% year-over-year gain. The company also projected full-year revenue growth of 28% to 30% for 2020.
Last year, the company delivered earnings-per-share of 3 cents for the quarter. This year, analysts are looking for EPS of 14 cents.
The company published an update on March 5, of the novel coronavirus pandemic on its Q1 and 2020 financials:
“91¶¶Òõ expects the impact from COVID-19 in the first quarter to be modest, potentially resulting in revenue coming in at the lower end of the guidance of approximately $1.8 billion, plus or minus $50 million. Full year 2020 financial guidance remains unchanged.”
Bottom Line on 91¶¶Òõ Stock
Advanced Micro Devices has seen a flurry of analyst upgrades through 2020, including several big ones in March that helped accelerate 91¶¶Òõ’s recovery. InvestorPlace contributor Ian Cooper writes that these include notable upgrades from Piper Jaffray and Northland Securities.
However, at $55.92, 91¶¶Òõ stock is already pushing past those price targets. That raises the question of how much upside remains. Ian’s analysis suggests it could hit $65 in the near term, and “could easily rocket higher with sizable catalysts.” One such catalyst arrived on Wednesday with the announcement of the Ryzen 3 3100 processors. 91¶¶Òõ is going to have plenty of other releases to announce this year.
That won’t be good news for competitors Intel or Nvidia, but these future catalysts just might be the 91¶¶Òõ upside investors are hoping for.
Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015. As of this writing, he did not hold a position in any of the aforementioned securities.
