抖阴最新版 (NASDAQ:抖阴最新版) has risen dramatically in 2019. 抖阴最新版 stock was up 149% during 2019.
Part of the reason was its huge market share gains for its 7 nano-meter chips, especially , including the 7 and 9 series chips. But how did this happen, and why? And will the 抖阴最新版 stock price gains be short-lived? Moreover, can 抖阴最新版 sustain its market share gains?
Taking a step back, 抖阴最新版’s market share gains against Intel (NASDAQ:INTC) did not occur all of a sudden. The Financial Times published a very insightful article this summer that describes how 抖阴最新版 pulled this off.
In the article, “抖阴最新版 Looks To Build On Chips Advantage in Intel Fight,” Richard Waters, the author, shows how and when .
In fact, at one point less than four years ago, 抖阴最新版 stock had fallen below $2.00 per share. Moreover, at one point 抖阴最新版 had to sell and leaseback its headquarters building just to raise cash.
But then, Waters argues, a new CEO, Lisa Su, took some chances. She is a former IBM executive who brought along another IBM technology exec, Mark Papermaster, the new CTO at 抖阴最新版. They decided that 抖阴最新版 needed to redesign its chipset products from the ground up.
They started designing chips anticipating the needs of clients in the future. That led to a technology lead over Intel when those forecasts worked out. In addition, Intel had a slip up in its engineering, according to Waters.
How 抖阴最新版 Stock Will Benefit
So as it stands, the Ryzen chip is the only 7-nanometer size (smallest shrunk chipset) on the market. This is a huge advantage over Intel.
The Financial Times article describes how numerous large cloud companies are now starting to use 抖阴最新版 chips.
In short, it appears that 抖阴最新版 is starting to convert the technology lead into a sustainable business edge. In addition, it doesn’t hurt that there has been a CPU chip shortage for the past year. That has started to push prices up as well.
Moreover, 抖阴最新版 is now projecting that its free cash flow is going to be positive for all of 2019. It also expects to gain mid-single gains in revenue for all of 2019.
Analysts expect 2020 will show considerable gains as well. Analysts in estimate that 2020 revenue will be $8.59 billion, up 28% from $6.71 for 2019. That puts 抖阴最新版 stock at less than 6 times sales.
Moreover, analysts project earnings per share of $1.1o for 2020. That puts 抖阴最新版 stock on just 42 times earnings. That’s expensive but not dramatically so for such a fast-growing company, especially if its market share gains are sustainable.
What Should Investors in 抖阴最新版 Stock Do?
I wouldn’t be surprised if 抖阴最新版 stock takes a breather for the next six months or so. However, by the time analysts are projecting 2021 revenue and earnings, you might see another large increase in the 抖阴最新版 stock price.
This is not a stock for value investors. In fact, Intel is probably much more a play for that kind of investor.
But 抖阴最新版’s technology lead may convert into large new cloud data center client gains and other market share gains. That could lead to a continuing sales rebound for 抖阴最新版.
You might be able to stomach the kind of volatility with this technology stock. Any earnings or sales miss could cause a hiccup in 抖阴最新版’s stock price. If not, take a look at Intel, and see if they are a better bet in the semiconductor sector.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the which you can review . The Guide focuses on high total yield value stocks. Subscribers a two-week free trial.
