Should you buy AMD stock right now? It wouldn’t be an exaggeration to say that chipmaker Advanced Micro Devices (AMD) started the year with a bang. We saw AMD stock prices surge to a new all-time high.
On the first day of trading in 2020, AMD surpassed its all-time high during the dot-com bubble nearly 20 years ago. Even in the last four years alone, prices rose from just above $2 to $51. But the question remains, “Should you buy AMD stock right now?
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Should You Buy AMD Right Now?
Should you buy AMD stock right now? The gains are impressive. Year over year, AMD shares are up an impressive 158%. To put this in perspective, Intel ($INTC), one of AMD’s main competitors, showed gains of just 44%. And there’s more; AMD outperformed the iShares PHLX Semiconductor ETF ($SOXX). All of this was despite it being up 64% YOY as well. Furthermore, AMD even made the top S&P 500 stock pick of 2019!
If you want to be alerted when we buy into AMD, then follow our stock alerts. As a result, you’ll know what we’re thinking about it.
How AMD Stock Is Crushing Its Competition
If you’re wondering if you should buy AMD stock right now, look at its competition. Regarding price performance, in the past year, AMD shares have returned 158%, significantly outperforming the industry’s rally of 50.6%.
I think AMD could have another explosive year ahead, especially as it continues to gain market shares from Intel.
Currently, Intel is struggling with processor shortages. Unfortunately, yet predictably, notebook vendors are looking elsewhere to source.
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Is AMD Stock the NVIDIA Killer?
Did you know the GPU market will hit $104.71 billion in sales by 2025? Most of this growth is attributed to advancements in augmented reality (AR), virtual reality (VR), and artificial intelligence (AI).
To avoid being left behind, AMD has reportedly developed advanced high-performance graphics cards to challenge NVIDIA’s $NVDA dominance in the high-end GPU market.
The GPU is allegedly dubbed the “NVIDIA Killer” and touted 30% faster than NVIDIA’s RTX 2080 Ti. I’m sure this has the NVIDIA shareholders squirming in their seats.
With the rumored 2020 launch of the new GPU, AMD will be the heavy hitter in the high-end graphics card market. And the stats don’t lie.
According to data from the 3rd quarter of 2019, AMD’s market share in discrete GPU shipments was 27.08%. This was up from 25.72% in the third quarter of 2018.
Conversely, NVIDIA’s market share declined to 72.92% from 74.28% in the same period. AMD continues to pull winning cards from their hat.
In 2020, this card is a gaming console. For one thing, both Microsoft and Sony are launching new gaming consoles with AMD chips.
What’s more, AMD’s GPUs, based on Navi gaming architecture, are compliant with PCIe 4.0 and offer high-speed GDDR6 memory.
The user will have an impressive visual gaming experience in layperson’s terms. If that doesn’t speak to the earning potential of AMD stock, I don’t know what does.
Check out the monthly chart as of February 2020. \$AMD has completed a MAJOR cycle breakout and major cycle high into trend line resistance. As a technical trader, do I buy here? Looking at the chart from a technical standpoint, it doesn’t look like the best entry. However, resistance can break, and stocks that continue to make all-time highs tend to continue to do so. But you should take a look at the charts and decide for yourself.
What Are the Best Stocks to Invest in Right Now?
Should you buy AMD right now? The market has been rising for quite some time. As a result, you’d like to ensure you have the best stocks to invest in. Look for the best stocks with the best growth potential to invest in.
AMD is a stock we love to trade in our trade room. If it’s got a good setup, it’s a stock we’ll also include in our swing trade watch list.
What Are the Analysts Saying About AMD Stock?
Should you buy AMD stock right now? A Cowen analyst, Matthew Ramsay, adjusted his valuation target from $47 to $60. His rationale: AMD’s consistent track record of execution and stability combined with their premier products.
We also see similar sentiment from Deutsche Bank analyst Ross Seymore. Even though he has a “hold” rating on AMD, he raised the price target from $29 to $40. Seymore said, “We fully expect AMD’s strong product/strategic execution to continue in 2020 and 2021.”
Furthermore, due to gains in the server market, Wells Fargo analyst Aaron Rakers increased his price target from \$40 to \$48. He justifies AMD’s high-performance computing and strong competitive positioning in data center CPUs. Check out Tipranks for an updated report.
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What Should You Do?
Should you buy AMD stock right now? AMD continues to chip away at the market share from heavy hitters like Intel and NVIDIA ($NVDA). With sufficient wiggle room for growth and the ability to chip away at the competitors’ market share, AMD isn’t going anywhere any time soon.
However, the risks to the global semiconductor industry posed by the COVID-19 outbreak have grown over the last few weeks and have left us with a shaky market.
As of writing this, AMD closed at $49.00, down from $60 a few days prior. The drop of around 10% is attributed to concerns that the Coronavirus outbreak would dampen chip demand in China. To make matters worse, AMD reported mixed fourth-quarter numbers.
But, historically, global epidemics tend not to impact the semiconductor market. SARS, for example, didn’t impact the semiconductor market in 2002.
On the contrary, sales of semiconductors rose across the globe during the SARS outbreak. Similarly, during the H7N9 epidemic of 2010, global semiconductor sales rose.
Final Thoughts: AMD Stock
Should you buy AMD stock right now? Overall, I think the impacts of Coronavirus will be felt across the board. On the plus side, though, it could be an excellent opportunity to dip buy those stocks you couldn’t afford prior.
To answer the question, “Should you buy AMD stock right now?” My answer: What does the chart tell you? And the fundamentals? Look at both and decide using a bit of good old-fashioned analysis.
If you’re curious to learn how to identify dip buys, subscribe to the Bullish Bears stock trading service today.
Frequently Asked Questions
AMD stock is considered a buy. The tech sector has been hot for some time now.
AMD stock price target is $201. 42. It has a high projected of $270 and a low of $125.00.
Analysts believe that AMD will be worth upwards of $3,000 in 2030. However, there'd most likely be a stock split if the price got anywhere near that.
AMD is projected to be worth $288 by the end of 2025
