The stocks of the California-based company Advanced Micro Devices are into consideration by the stock
analysts. These stocks are not having high times, like their fellow companies. AMD works as a
semiconductor company and supplies the products globally. There are majorly two segments in which
the Company operates: Computer & Graphics and Enterprise (Semi-customized and Embedded).
AMD is a highly competitive company with a solid background and growth. The company is making
consistent efforts for growth even during this phase of the corona pandemic. There are several reasons
to think about investing in Advanced Micro Devices, despite these tough global times.
1) Growth during tough phases
AMD is not a company trapped in the negative business cycles. Many companies have shown their
imbalanced approach and would take many years to regain the 2019 business levels. The revenue
growth of 25% is anticipated by the analysts and the per-share value will increase with the markets to
get back to the track. AMD is expected to have robust growth at the times which are hopeless for many
companies.
2) Reasonable investment
AMD has been a trusted group. It increased the market capitalization of $2B to $62B with the
preeminent strategies and within less time. The financials of the company have improved constantly
which encourages the stock investors to make a choice. The assets of the company doubled from the
stats of 2016 to 2019. During this phase, the liabilities also increased but the values went with a perfect
balance for the appropriate capitalization levels. The company has been decreasing its debts and only
one-third of the amount was left at the end of 2019. This is basically what the stock analysts wish to see:
low liabilities and higher assets. AMD stock can’t be ignored for its free cash flow prospects.
3) Trading the stock
There is a massive movement in the AMD stocks. The company is not among the giant players in the
industry but gaining double the market capitalization value within 20 weeks is a commendable figure.
The company has done excellently in consolidating the gains. At present, the stock price is ranging
between $53- $60 levels. The probability of gaining momentum is high but again, it depends on how
things will turn for the market.
Recently, AMD and Google Cloud have announced the beta availability of the Confidential VMs for the
Google computing Engine. The security features of the processors are being considered for this purpose
and the use of second-generation AMD EPYC processors is done. The confidential virtual machines are
aimed at providing high-performance processing for the highly demanding computational tasks and
enabling the encryption process for the sensitive cloud data.
