Advanced Micro Devices Expected to Climb 348% in Five Years
AMD stock could grow to three times its value in five years, says Wall Street analysts who expect incredible growth from the company.
Quick overview
- Wall Street analysts predict that Advanced Micro Devices (AMD) could achieve a 348% growth by 2030, driven by a compounded annual growth rate of 60%.
- AMD's growth is expected to be led by its Instinct GPUs and AI accelerators, which may grow at a rate of up to 80% per year.
- Despite promising long-term projections, AMD's stock has recently declined, falling 17% after their fourth quarter guidance and down to $206 from $246 in three months.
- To realize its growth potential, AMD must improve investor sentiment regarding its capital expenditures, which have negatively impacted profits.
Investors may be able to expect a considerable upside for Advanced Micro Devices (AMD) in the next few years if financial growth estimates are accurate.
Wall Street analysts say that AMD could grow significantly over the next five years, achieving an increase of 348% by 2030. This prediction comes after AMD showcased their roadmap for the coming years, and AMD anticipates that they will see a compounded annual growth rate of 60%.
AMD predicts that growth will be led by its Instinct GPUs and its AI accelerators, with these particular arms growing at a rate of up to 80% per year. That would put them on par with Nvidia’s (NVDA) growth rate and place them side by side with their most direct competitor.
Watching AMD Stock to Predict Growth Potential
AMD stock fell 17% after they released their fourth quarter guidance in early February, and their stock is down another 2.83% for Thursday. Is there really any indication that the company is going to turn things around soon? The five-year plan may look promising, but their short-term movements are less encouraging.
The company even issued excellent guidance following their quarterly report that was better than expected, and yet it was not enough to keep their stock price from tanking. They have been caught up in a wave of strong market sentiment that criticizes capital expenditures that are excessive and that cut sharply into profits.
AMD may be forecasting a 32% year over year increase for their revenue, but their stock price is down to $206 after hitting $246 three months ago. The company will have to change investor sentiment about their spending if they are going to see their stock make an appreciable improvement.
Analysis from Wall Street shows the potential for a massive growth spurt over the next few years, with gains of around 348% according to projections. If those estimates hold true and AMD really does grow as much as expected, then their stock price could hit $1,000 per share. That would be an increase of about 331%, putting them on par with some of the best stock growth stories of recent years, many of those in the AI field.
Over the last three years, AMD’s stock price has grown from $78 per share to more than $200, and its growth in that time has been around 156%. That is phenomenal growth, but the company will have to do better than that to achieve what Wall Street is talking about now. With the AI market still growing rapidly, that kind of exponential growth is possible, but AMD has fierce competition in the field.
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