AMD is the second largest manufacturer of personal computer microprocessors after Intel, a position the group has held for more than twenty years. But the group is also the second-largest player in the graphics chip market after NVidia. This followership position often forced the group to invest heavily in order to follow technological developments offered by its competitors, with profitability that tended to be more volatile and cyclical.
At the stock market level, the group has had a turbulent few years, with shares correcting 65% in 2022 to hit a low of $55. After recovering in 2023, AMD will explode from October 2023 to new records ($227 in early March). The company’s stock has been riding a wave of developments in artificial intelligence and data centers, two segments in which AMD has seen very strong growth in recent years.
The group aims to capture a significant portion of the artificial intelligence chip market by offering cheaper alternatives to GPUs offered by NVidia. In 2023, the group’s global market share increased from 12 to 19%, and this movement is expected to continue. However, the stock has lost a third of its value since those peaks due to geopolitical conflicts between the United States and China.
Consensus remains very favourable, with 38 positive views out of 49, with the average target indicating potential close to 30%, with constant upward revisions from December 2022 onwards. Finally, expectations for the next three years remain very favourable, with annual growth expected to be around 20% in turnover and 40% in operating profit. The group will publish first-quarter results on Tuesday, April 30.
Nvidia, the best game among the “Magnificent Seven”, ahead of the Meta record
Return to Xior
Xior shares soared nearly 5% in Friday’s session after reporting first-quarter 2024 results, bringing the week’s gain to nearly 7%. Profits were up 21%, rents were up about 7%, and occupancy was 98%. More importantly, management completed the sale of assets worth €220 million, a necessary step to stabilize the financial situation.
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