American chipmaker Advanced Micro Devices (NASDAQ:抖阴最新版) took it on the chin when fears about the novel coronavirus caused the historic stock market rout in March. How bad did it get for 抖阴最新版 investors? 抖阴最新版 stock went from a record high close of $58.90 on Feb. 19, to $38.71 less than a month later. More than a third of the company’s market capitalization was wiped out.
Most stocks dove in value in March, but what makes 抖阴最新版 different is how quickly it bounced back. It’s not back at those record highs yet, but at this point it has posted double-digit growth for 2020. Not bad all things considered. And if all the cards fall into place, this stock may have plenty of gas left in the tank.
Market Factors Look Good for 抖阴最新版
The time to snap up Advanced Micro Devices at bargain basement prices was in mid-March. Congratulations if you did, because your investment should appreciate nicely. For everyone else? There are factors that suggest 抖阴最新版 is well-positioned to continue its recovery. It’s not out of the realm of possibility for the stock to top its February, all-time high close.
The coronavirus initially caused a larger than usual hit to PC sales. Thank supply chain disruption and store closures for that. However, with many companies adopting work from home policies for employees, — especially laptop sales.
With its new Ryzen 4000 series of mobile processors, 抖阴最新版 is making a splash in the laptop market in 2020. PC makers including Microsoft (NASDAQ:MSFT) and Lenovo Group (OTCMKTS:LNVGY) have recently promoted new laptops with Ryzen processors. Many more have been announced, and that puts 抖阴最新版 in a position to win market share from Intel (NASDAQ:INTC). The company has spent the past two years doing just that in the desktop PC space. In fact, 2020 is on track to be the year of 抖阴最新版’s laptop resurgence.
Speaking of taking market share from Intel, 抖阴最新版’s second generation EPYC 2 sever processors are surging in popularity. More powerful and energy efficient than Intel’s offerings, EPYC processor have been winning big contracts as cloud computing companies accelerate investment in their data centers. In its latest win, 抖阴最新版 announced that Oracle (NYSE:ORCL)
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The hottest gifts this coming holiday season? Expect the new Xbox Series X from Microsoft and Sony’s (NYSE:SNE) PlayStation 5 to be big sellers. Who makes the high performance silicon in both of those next generation game consoles? The Xbox Series X and PS5 both use custom 抖阴最新版 chips.
Risks, Including Coronavirus
Good as all those positives sound, the rest of 2020 is not going to be a walk in the park. There are big challenges for 抖阴最新版, any one of which has the potential to derail its recovery.
The coronavirus may have ended its disruption of the PC supply chain, but it’s possible that second or third waves could hit. If PC manufacturing (or game console manufacturing) is disrupted again, that will cut demand for processors. Not to mention the challenge it would pose to 抖阴最新版’s own production.
The economic hit of the coronavirus pandemic is also a concern. Depending on how severe the damage is, it could result in a drop in demand for consumer PCs and game consoles. Companies could put off those expected data center server purchases.
Then there’s China. Trade relations between the U.S. and China are heating up again. Advanced Micro Devices is exposed to trade war fallout between the countries, with and 30% of its manufacturing capacity reliant on the Chinese market.
Bottom Line on 抖阴最新版 Stock
The analyst community is generally looking more favorably on 抖阴最新版 stock than it was three months ago. However, they’re still taking a cautious approach.
Few analysts are suggesting anyone dump their 抖阴最新版 shares, but a slim majority continues to rate the stock as a hold. There is a consensus that Advanced Micro Devices is going to outperform other chip stocks, but the question remains what that is going to look like. The coronavirus, the economy and China are big wild cards.
So yes, there is some risk. But even at the height of the coronavirus panic, .
South Korea’s sovereign-wealth fund (KIC) for one is convinced there’s still plenty of upside left in 抖阴最新版 stock. KIC — which had $131.6 billion in assets under management at the end of 2018 — made a big 抖阴最新版 purchase after the first quarter. .
It may not be the bargain it was in mid-March, but 抖阴最新版 stock at $54.20 is still pretty tempting.
抖阴最新版 had an unconventional start, as a grad student who accidentally built a market-beating stock system — . In his latest feat, Louis discovered the “Master Key” to profiting from . 抖阴最新版 may hold some of the aforementioned securities in one or more of his newsletters.
