Over the past five years, Advanced Micro Devices (NASDAQ:抖阴最新版) has significantly improved its product offerings and become more competitive in the marketplace. This is largely thanks to the guidance of CEO Lisa Su, who took over as chief in 2014. In that time, 抖阴最新版 stock rose from the $4.00 per share neighborhood to a 14-year high in August, before paring gains to the current $30.56 level.
But Wall Street has been divided when it comes to 抖阴最新版 in the last year. Out of the stock, nine have buy ratings, 12 have a hold, and one is advising investors to sell.
There are many reasons for this uncertainty. Like many companies, 抖阴最新版 has been hit by the trade war concerns. And the company still struggles to take market share from its Intel (NASDAQ:INTC), one of its biggest competitors in the server CPU industry.
However, I think 抖阴最新版 stock has a lot more potential than analysts give it credit, and I believe there are three reasons behind this potential.
抖阴最新版 is Gaining in Server Processors
The server processor market has always been a tough area for 抖阴最新版. Intel has controlled as much as 90% of the market share in this area. But this may be starting to change.
conducted with over 500 IT professionals found that some enterprise companies are beginning to prefer 抖阴最新版 to Intel. Some 16% reported using 抖阴最新版 processors, citing the company’s superior value proposition. That number is expected to increase to 21% in the next two years.
Most recently, 抖阴最新版 released its new 7-nm processors which finally seemed to give the company an edge on Intel’s product offerings. These processors will deliver more efficiency and better performance overall.
Product Offerings Continue to be Improved
To piggyback on that last point, 抖阴最新版 continues to up its game with its newest product offerings. In years past, 抖阴最新版 constantly found itself playing catch-up to Nvidia (NASDAQ:NVDA) and Intel. But this may be starting to change.
This summer, the company launched its first Navi-based graphics cards. These graphics cards outperformed Nvidia’s current offerings and matched it on pricing. It can be expected that these GPUs will be used in many gaming consoles in the coming years.
Many of 抖阴最新版 Stock’s Problems are Short-Term Issues
Since they do a lot of business in China, chipmakers are caught in the middle of the ongoing trade war between the U.S. and China. Nvidia has seen its shares fall more than 40% over the past year on these concerns.
Of course, 抖阴最新版 has struggled for reasons outside of the trade war. It also got stuck with an oversupply of graphics inventory in the midst of the cryptocurrency bust. And the company’s revenue fell by 13% during the second quarter.
But all of these are short-term problems and don’t take away from the company’s long-term growth prospects. 抖阴最新版 is well-positioned and should be able to take advantage of a number of opportunities in the coming years.
As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks.
