- Tram Ho
Advanced Micro Devices (AMD) stock has become the best performing stock on the S&P 500 index in 2018 and 2019, but that’s still not their limit. AMD had a better start in 2020 when they finally broke their previous record highs during the dot-com bubble.
On the first trading day of the new year, AMD shares soared 7.1%, bringing the company’s stock price to a new record high when closing at $ 49.10. Despite the past two years, AMD shares have always led in the S&P 500 index, the company’s stock price has never exceeded the record level of $ 47.28 set on June 21, 2000, until today. by.
AMD shares are from a record high of 2000 so far.
After hitting record highs since the 2000s, AMD has struggled to keep pace with its major competitors, including the giant Intel. However, for more than a year now, Intel has also had production problems, while AMD has been constantly releasing new chips and even taking part in the server chip playground.
While most semiconductor companies will experience a decline in profits and revenue in 2019, AMD still finds its growth formula and its stock has been rewarded for this result.
The jump in trading day comes after an Instinet analysis report set AMD’s target price up to 45% higher, ranging from $ 40 to $ 58. The reason they give is that the success in the last 2 years of AMD shares will continue to be maintained in 2020.
” We expect AMD will continue to strengthen its competitive position in 2020 through continuous introduction of new products on 7nm and 7nm + technologies, continue to gain more market share, increase ASP (selling price). average), increase revenue and increase operating leverage . ” Analyst David Wong said.
According to FactSet, AMD’s growth has brought its market capitalization to nearly $ 55 billion and its price-to-earnings ratio has been higher than 250, making analysts’ average price targets much higher. to the current level. AMD’s closing price on the trading day was 22% higher than the average target price of 38.08 USD.
Refer to marketwatch
Source : Genk