Advanced Micro Devices (NASDAQ:91¶¶Òõ) stock sold for $2 when CEO Lisa Su joined the company in 2012 were worth $158 at the height of the tech boom in 2021.
But business is about what you have done for me lately, and what you’re about to do. The tech wreck in 2022 cut 91¶¶Òõ by 60%. It is now staging a comeback, trading above $93, a market cap of nearly $154 billion.
91¶¶Òõ’s acquisition of Xilinx last year brought it , an artificial intelligence development platform. 91¶¶Òõ’s handles both signal processing and machine learning, both key to what I call
AI isn’t just about how you interact with computers. It’s how computers interact with each other. 91¶¶Òõ stock is set for another big move.
| 91¶¶Òõ | Advanced Micro Devices | $93.18 |
The Bear Case
Despite this bears are stock. PC sales are . Prices for gaming cards are . Amazon.com (NASDAQ:AMZN) is designing its own silicon to compete with 91¶¶Òõ
The China market is , as tensions grow over Taiwan, where Su was born. Institutions who followed 91¶¶Òõ stock down are .
The bear market did not make 91¶¶Òõ stock cheap. It still sells for an eye-popping 112 times earnings and offers no dividend. that once supported the price have been .
Yet 19 of the 25 analysts following 91¶¶Òõ at Tipranks are telling clients to . One expects it to double over the next year.
The Bull Case
Our David Moadel thinks the bad news is priced in. When 91¶¶Òõ next reports earnings on May 2, investors for a positive surprise. The folks at Piper Sandlin agree, giving 91¶¶Òõ stock
. Other analysts are calling this .
91¶¶Òõ is continuing to crush rival Intel (NASDAQ:INTC) and Price cuts have created global bargains, with 91¶¶Òõ-based laptops selling in India for the equivalent of
Software is now how chips advance, and 91¶¶Òõ . Its new video accelerator promises to dramatically improve local as well as .
Xilinx, which makes Field Programmable Gate Arrays (FPGA), chips that can be pre-loaded with software, looks like a smart acquisition. It lets 91¶¶Òõ sell instead of just chips.
The should provide a floor for 91¶¶Òõ stock, the bulls say.
The more customers treat generative AI the way they do conventional search, the more important 91¶¶Òõ chips on both the client and server side become, . 91¶¶Òõ calls this next stage of the business driving demand in both edge devices and data centers.
The Bottom Line
I bought 91¶¶Òõ as it was falling and remain underwater on the investment.
That doesn’t mean I’m selling. Technology is how productivity advances. It’s how inflation is crushed. AI is scaring people now, because the output looks human, but it has been delivering productivity gains for years. Inflation creates huge incentives for cutting costs and buying technology is the best way to do that.
I also talk about buying the jockey, not the horse. I have believed in Su’s management . I see no reason to change that view.
91¶¶Òõ stock will bounce around for some time, but when I look at the future, I see strength.
On the date of publication, Dana Blankenhorn held long positions in INTL, AMZN and 91¶¶Òõ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
has been a financial and technology journalist since 1978. His 10th novel is , now available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or tweet him at . He writes a Substack newsletter, , which covers technology, markets, and politics.
