AMD achieved 17.57% year-over-year revenue growth to $6.82 billion in the third quarter of 2024. The main driver of this growth was the data center segment, which posted a 122% increase in revenue. The personal computer segment also saw positive momentum with 29% year-over-year growth. In contrast, the gaming graphics cards segment posted a 69% decline, partly due to lower demand in the gaming hardware market.
Despite these positive results, AMD stock has depreciated more than 50% since its March 2024 peak of $227 per share. This decline can be attributed to the company’s cautious outlook for the final quarter of 2024, with AMD expecting revenue of around $7.5 billion, slightly short of analysts’ forecasts.
Analysts remain optimistic about AMD’s long-term growth, particularly with respect to developments in artificial intelligence and data centers. The new MI300 series products, designed for AI and cloud solutions, could bring the company up to $12 billion in revenue over the medium term, according to estimates.
It can be concluded that AMD continues to be an attractive investment title, primarily due to its strong position in data center and AI technologies. Although short-term factors such as market volatility and a slightly weaker revenue outlook may affect the stock price, the company’s long-term prospects remain favorable. The average target price for the short-to-medium term investment horizon has been set at $146.49 per share by analysts at Zacks.com.
Graph Source : www.zacks.com
