Advanced Micro Devices (NASDAQ: AMD) is among the world’s biggest and most well-known chipmakers. I am bullish on AMD stock.
The global microprocessor shortage put negative pressure on AMD stock in 2021. There’s also been a broad-based rotation out of technology stocks lately.
These aren’t problems specific to AMD, and there’s nothing fundamentally wrong with the company. In other words, there’s opportunity here.
Keep an eye on the stock’s 52-week high of $164.46, as AMD stock could break through that barrier in the near future. After all, AMD’s components are still among the best you’ll find anywhere on the planet.
Another Proof Point
Every time AMD introduces a new GPU (graphics processing unit), it’s headline news in the technology industry.
This time around, the news revolves around the recently introduced AMD Radeon PRO V620 GPU. Built with the latest AMD RDNA 2 architecture, the Radeon PRO V620 GPU delivers high-performance GPU acceleration for even the most demanding cloud workloads.
Immersive gaming experiences, intensive 3D workloads, and modern office productivity applications often take place in the cloud nowadays. The power requirements are intense, and that’s why the Radeon PRO V620 GPU will be in high demand.
Moreover, integrating AMD’s RDNA 2 architecture, with 32GB GDDR6 memory and AMD Infinity Cache, will make the Radeon PRO V620 GPU a truly powerful data center GPU solution.
To quote Jeff Connell, corporate vice president, Visual and Cloud Gaming, AMD, the Radeon PRO V620 is “yet another proof point of AMD’s excellence in gaming – from the PC to the console and now to the cloud.”
Accelerating the Performance of Supercomputers
Among the most important tech niche industries is high-performance computing, or HPC. Within this market, AMD is making its presence known through the innovation and adoption of its high-performance data center processors and accelerators.
The data proves this point convincingly. Impressively, a growing preference for AMD’s EPYC processors has resulted in the number of AMD-powered supercomputers increasing 3.5x year-over-year.
Not only that, but AMD powers four of the 10 most powerful supercomputers in the world.
Why is this significant? Forrest Norrod, senior vice president and general manager, Data Center and Embedded Solutions Business Group, AMD, offered an explantion.
“The demands of supercomputing users have increased exponentially as the world seeks to accelerate research, reducing the time to discovery of valuable information,” Norrod observed.
Naturally, this phenomenon presents an opportunity for AMD and its stakeholders.
“With AMD EPYC CPUs and Instinct accelerators, we continue to evolve our product offering to push the boundaries of data center technologies enabling faster research, better outcomes and more impact on the world,” Norrod added.
Wall Street’s Take
According to TipRanks’ analyst rating consensus, AMD is a Moderate Buy, based on 14 Buy and nine Hold ratings. The average AMD price target is $143.15, implying 6.3% upside potential.
The Takeaway
The analyst community might only be moderately bullish on AMD stock now, but the company has “proof points” to build a rock-solid bull thesis.
From gaming computers to supercomputers, there will be no shortage of demand for AMD’s ultra-powerful components.
Knowing this, it should be easy to take a long position in AMD stock with confidence, regardless of the ups and downs in the share price.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
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