The Zacks Analyst Blog Bank of America, Advanced Micro Devices, Linde, Comstock and Kingsway
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
0mins
Should l Buy AMD?
Source: NASDAQ.COM
Featured Stocks: Zacks.com highlights stocks such as Bank of America, AMD, Linde, Comstock, and Kingsway Financial Services in their Analyst Blog, providing insights on their performance and market outlooks.
Market Analysis: The report discusses the financial health and growth prospects of these companies, noting challenges like high funding costs for Bank of America, competition for Linde, and acquisition risks for Kingsway, while also emphasizing strong revenue growth for Comstock and AMD's expanding data center business.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 200.120
Low
210.00
Averages
289.13
High
377.00
Current: 200.120
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Stock Pullback Presents Buying Opportunity
- Strong Quarterly Performance: Despite a more than 17% drop in AMD's stock following its Q4 2025 earnings report, the company achieved impressive revenue and earnings growth, projecting a 32% year-over-year increase in Q2 2026 to $9.8 billion, indicating robust market demand and business resilience.
- Margin Improvement: AMD anticipates a non-GAAP gross margin of 55% in the current quarter, up 2 percentage points from last year, primarily driven by the launch of its latest AI data center processors, reflecting successful positioning in high-margin product lines.
- Market Reaction Analysis: Although AMD's earnings and outlook exceeded Wall Street expectations, the stock fell 4.8% as investors took profits, creating an opportunity for new investors to enter at a relatively attractive valuation with a current P/E ratio of 31, indicating potential investment value.
- Future Growth Potential: Analysts forecast a 60% increase in AMD's earnings for both 2026 and 2027, significantly above the S&P 500 average, and if AMD trades at 22 times earnings in three years, its stock price could reach $309, representing a 51% increase from current levels, showcasing strong long-term growth potential.
See More
AMD's Future Outlook: New Opportunities in AI Market
- Major Deal Prospects: Following its agreement with OpenAI, AMD has signed a contract with Oracle to supply 50,000 GPUs, indicating its growing appeal in the AI market and the potential to attract more major clients, which could drive revenue growth.
- AI Powerhouse Emergence: Through its collaboration with Tata Consultancy Services, AMD's Helios architecture will be utilized in AI data centers, further solidifying its position in the AI space; while not yet at Nvidia's scale, it is becoming a significant contender.
- Stock Recovery Expectations: Despite facing market corrections, analysts predict AMD's stock could rebound to $288 per share by the end of 2026, nearly 40% above its current price, reflecting confidence in its future potential.
- Industry-Wide Impact: AMD's performance is influenced by the overall AI sector; although currently under pressure, its ongoing investments and partnerships in AI will lay the groundwork for future growth, enhancing market confidence in its stock.
See More
AMD Guarantees $300 Million Loan for Crusoe Cloud Startup
- Loan Guarantee Agreement: AMD has agreed to guarantee a $300 million loan for cloud computing startup Crusoe, which will be backed by Goldman Sachs, allowing Crusoe to secure a loan interest rate of around 6%, significantly lower than market rates.
- Chip Buyback Proposal: AMD proposed to buy back its chips from Crusoe if the startup fails to attract customers like AI developers, providing financial security for Crusoe while enhancing AMD's competitive edge in the AI infrastructure market.
- Data Center Installation: Crusoe is installing AMD chips in an Ohio data center being built by Canadian developer 5C, which will further bolster AMD's presence in the emerging “neoclouds” market, catering to specialized cloud services for AI companies.
- Market Competition Strategy: AMD has recently expanded its collaboration with Tata Consultancy Services in India to roll out its latest AI data center design, aiming to capture market share in a rapidly growing sector, especially after posting a record $10.3 billion in revenue in Q4, a 34% year-over-year increase.
See More
Nvidia Shares Climb as Reports Indicate Approaching $30 Billion Investment in OpenAI.
- Nvidia's Investment: Nvidia is nearing a deal to invest $30 billion in OpenAI, the company behind ChatGPT.
- Significance of the Deal: This investment highlights Nvidia's commitment to advancing AI technologies and its strategic partnership with OpenAI.
See More
Taiwan's Semiconductor Production Hub Status Strengthened
- Global Semiconductor Hub: Taiwan is expected to maintain its status as the central hub for semiconductor production, producing over 60% of the world's chips and 90% of advanced semiconductors, thereby reinforcing its leadership in the global market and ensuring national security.
- Significant Export Growth: Taiwan's exports surged by approximately 70% in January, marking the fastest pace in 16 years, primarily driven by strong demand for AI hardware, highlighting Taiwan's crucial role in the global AI surge.
- GDP Forecast Upgrade: The Taiwan government has raised its GDP growth forecast for 2023 to 7.71%, with an expected full-year growth rate of 8.68%, the fastest in 15 years, reflecting robust economic recovery momentum.
- New Investments and Job Opportunities: Nvidia is advancing plans for a new headquarters in Taipei, with expected investments exceeding 40 billion New Taiwan dollars and the creation of over 10,000 jobs, further propelling Taiwan's semiconductor industry development.
See More
AMD and Broadcom Achieve Record Revenues in 2025
- AMD Financial Performance: In 2025, AMD achieved record revenue of $34.6 billion with a gross margin of 50% and earnings per share of $2.65, anticipating a 32% growth in Q1 2026 and a non-GAAP gross margin of 55%, indicating strong market demand and profitability.
- Broadcom's Growth Potential: Broadcom also set a record in 2025 and is expected to continue its growth momentum into Q1 2026, boasting an AI-specific backlog of approximately $73 billion, showcasing its robust competitive edge through a diversified product portfolio.
- Market Competitive Landscape: While both AMD and Broadcom are experiencing rapid growth, Broadcom is poised to dominate the next decade due to its diverse offerings in custom chips, networking, and enterprise software, reflecting the strategic significance of its business model.
- Investor Considerations: Despite Broadcom's trailing P/E of 68 being slightly lower than AMD's 79, both stocks are viewed as expensive, necessitating caution among investors, especially as the tech sector faces uncertainties.
See More
AMD Stock Pullback Presents Buying Opportunity
- Strong Quarterly Performance: Despite a more than 17% drop in AMD's stock following its Q4 2025 earnings report, the company achieved impressive revenue and earnings growth, projecting a 32% year-over-year increase in Q2 2026 to $9.8 billion, indicating robust market demand and business resilience.
- Margin Improvement: AMD anticipates a non-GAAP gross margin of 55% in the current quarter, up 2 percentage points from last year, primarily driven by the launch of its latest AI data center processors, reflecting successful positioning in high-margin product lines.
- Market Reaction Analysis: Although AMD's earnings and outlook exceeded Wall Street expectations, the stock fell 4.8% as investors took profits, creating an opportunity for new investors to enter at a relatively attractive valuation with a current P/E ratio of 31, indicating potential investment value.
- Future Growth Potential: Analysts forecast a 60% increase in AMD's earnings for both 2026 and 2027, significantly above the S&P 500 average, and if AMD trades at 22 times earnings in three years, its stock price could reach $309, representing a 51% increase from current levels, showcasing strong long-term growth potential.
See More
AMD's Future Outlook: New Opportunities in AI Market
- Major Deal Prospects: Following its agreement with OpenAI, AMD has signed a contract with Oracle to supply 50,000 GPUs, indicating its growing appeal in the AI market and the potential to attract more major clients, which could drive revenue growth.
- AI Powerhouse Emergence: Through its collaboration with Tata Consultancy Services, AMD's Helios architecture will be utilized in AI data centers, further solidifying its position in the AI space; while not yet at Nvidia's scale, it is becoming a significant contender.
- Stock Recovery Expectations: Despite facing market corrections, analysts predict AMD's stock could rebound to $288 per share by the end of 2026, nearly 40% above its current price, reflecting confidence in its future potential.
- Industry-Wide Impact: AMD's performance is influenced by the overall AI sector; although currently under pressure, its ongoing investments and partnerships in AI will lay the groundwork for future growth, enhancing market confidence in its stock.
See More
AMD Guarantees $300 Million Loan for Crusoe Cloud Startup
- Loan Guarantee Agreement: AMD has agreed to guarantee a $300 million loan for cloud computing startup Crusoe, which will be backed by Goldman Sachs, allowing Crusoe to secure a loan interest rate of around 6%, significantly lower than market rates.
- Chip Buyback Proposal: AMD proposed to buy back its chips from Crusoe if the startup fails to attract customers like AI developers, providing financial security for Crusoe while enhancing AMD's competitive edge in the AI infrastructure market.
- Data Center Installation: Crusoe is installing AMD chips in an Ohio data center being built by Canadian developer 5C, which will further bolster AMD's presence in the emerging “neoclouds” market, catering to specialized cloud services for AI companies.
- Market Competition Strategy: AMD has recently expanded its collaboration with Tata Consultancy Services in India to roll out its latest AI data center design, aiming to capture market share in a rapidly growing sector, especially after posting a record $10.3 billion in revenue in Q4, a 34% year-over-year increase.
See More
Nvidia Shares Climb as Reports Indicate Approaching $30 Billion Investment in OpenAI.
- Nvidia's Investment: Nvidia is nearing a deal to invest $30 billion in OpenAI, the company behind ChatGPT.
- Significance of the Deal: This investment highlights Nvidia's commitment to advancing AI technologies and its strategic partnership with OpenAI.
See More
Taiwan's Semiconductor Production Hub Status Strengthened
- Global Semiconductor Hub: Taiwan is expected to maintain its status as the central hub for semiconductor production, producing over 60% of the world's chips and 90% of advanced semiconductors, thereby reinforcing its leadership in the global market and ensuring national security.
- Significant Export Growth: Taiwan's exports surged by approximately 70% in January, marking the fastest pace in 16 years, primarily driven by strong demand for AI hardware, highlighting Taiwan's crucial role in the global AI surge.
- GDP Forecast Upgrade: The Taiwan government has raised its GDP growth forecast for 2023 to 7.71%, with an expected full-year growth rate of 8.68%, the fastest in 15 years, reflecting robust economic recovery momentum.
- New Investments and Job Opportunities: Nvidia is advancing plans for a new headquarters in Taipei, with expected investments exceeding 40 billion New Taiwan dollars and the creation of over 10,000 jobs, further propelling Taiwan's semiconductor industry development.
See More
AMD and Broadcom Achieve Record Revenues in 2025
- AMD Financial Performance: In 2025, AMD achieved record revenue of $34.6 billion with a gross margin of 50% and earnings per share of $2.65, anticipating a 32% growth in Q1 2026 and a non-GAAP gross margin of 55%, indicating strong market demand and profitability.
- Broadcom's Growth Potential: Broadcom also set a record in 2025 and is expected to continue its growth momentum into Q1 2026, boasting an AI-specific backlog of approximately $73 billion, showcasing its robust competitive edge through a diversified product portfolio.
- Market Competitive Landscape: While both AMD and Broadcom are experiencing rapid growth, Broadcom is poised to dominate the next decade due to its diverse offerings in custom chips, networking, and enterprise software, reflecting the strategic significance of its business model.
- Investor Considerations: Despite Broadcom's trailing P/E of 68 being slightly lower than AMD's 79, both stocks are viewed as expensive, necessitating caution among investors, especially as the tech sector faces uncertainties.
See More
