However, both companies, AMD and Nvidia, can continue thriving in the discrete GPU market space. With the economy going through rocky times, we could see AMD's market share continue increasing in this space. It's difficult to say which discrete GPUs are better, but AMD has always been the more affordable option. Now, while Nvidia is experiencing difficulties, it is giving up some market share recently, and AMD is advancing, now controlling around 20% of the GPU market space. Intel is the undisputed leader in the integrated GPU market, while AMD and Nvidia lead in the discrete GPU space. We see that there are essentially three players in the GPU market. Therefore, we can probably continue seeing AMD's CPU market share increase and its stock price grow as the company advances in the coming years. As AMD continues innovating, it could grow its CPU market share beyond 40% and higher in the coming years. Also, due to the relatively low market share in the lucrative laptop segment, AMD has plenty of room to grow and acquire more market share from Intel as the company advances.Īll CPUs Market Share ( )ĪMD's market share is only around 38.5% among all CPUs. While AMD's laptop market share is limited to about 24%, it is around the highest percentage AMD has had in nearly 15 years. AMD's Ryzen 7000 is the gold standard in desktop CPUs, and it is unclear when or how Intel will catch up. As Intel continues struggling, we could see AMD take over the majority of its market share in the desktop market for a prolonged period this time. We saw a similar dynamic in 2020, but Intel clawed back market share in 2021. We see that AMD's desktop market share is approaching 50%. The company's overall X86 market share recently crossed the 30% mark and is likely to increase as we advance. Despite some transitory macroeconomic challenges in its markets, AMD remains well-positioned to capitalize in the future.ĪMD's market share growth remains phenomenal as the company continues expanding across multiple segments. AMD's Market DynamicsĪMD primarily competes in the CPU and GPU markets, and AMD's primary competitors are Intel ( INTC) and Nvidia ( NVDA). Therefore, AMD should continue outperforming as the economy straightens out in the coming quarters. There is no indication that AMD is slowing down (beyond the general economic slowdown). Additionally, we have seen many EPS beats and double-digit outperformance in recent quarters. The company's EPS has exploded from just several cents per quarter to more than $1. We see a similar dynamic with AMD's EPS growth. Moreover, AMD has achieved impressive quarterly results, often beating analysts' estimates by wide margins. The company's revenues have surged from fewer than $2 billion a quarter to more than $6 billion per quarter. In recent years, AMD has seen quite a bit of revenue growth. Revenues have tripled since 2016, and EPS went from negative to $2.79 last year. AMD is a global CPU and GPU leader, and AMD delivers. There is a reason why AMD was one of the hottest stocks on Wall St. In the intermediate and longer term, AMD may be one of the best buys in the tech space. While there may be more volatility or modest downside ahead due to the broader bear market in equities, AMD's stock is in an excellent place to start accumulating or dollar cost average if you are already long shares. We see the full stochastic and CCI turning higher, demonstrating a shift to positive momentum. Indiscriminate selling has brought AMD down to lows not seen in years. Technical Overviewįrom a technical perspective, we see that the RSI dipped below 30 recently, illustrating grossly oversold market conditions. AMD's stock has become remarkably cheap and should go substantially higher as the company advances. AMD should continue to lead, grow, and innovate in the CPU and GPU space, allowing the company to continue increasing revenues and profitability potential. Forget about that 60 times earnings valuation AMD is now trading at just 15 times this year's EPS projections.Īdditionally, AMD has plenty of revenue and EPS growth ahead. Moreover, AMD's valuation has come down dramatically. Now, instead of being epically overbought, the stock is oversold. From peak to trough, AMD crashed by a whopping 62%. Well, fast forward about 11 months, and a lot has changed.ĪMD recently dipped below $65 for the first time in over two years. Back then, AMD was trading at around $160 and had a nosebleeding high valuation of roughly 60 times 2021 earnings estimates. Last November, I used AMD and several other stocks to highlight the overbought nature of the stock market in my " Epic Drop is Coming " article. What happened to everyone's favorite chip stocks? I'm talking about Advanced Micro Devices ( NASDAQ: AMD) at this time.
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