Goldman Sachs analysts place high hopes in AMD’s share value

AMD has seen a global increase in the demand for its CPUs and GPUs. With the advent of its next-gen Zen 3 based Ryzen 5000 series processors and RDNA 2 based “big Navi” line-up, the company has seen an increase in its stock value.

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According to sources, the analysts at Goldman Sachs have claimed that the recent increase in AMD profits has been upgraded. They went from being Neutral to being designated as ‘Buy.’ This also means that its stock price went from $84 to $96.

This sudden growth and increase in stock value are being termed a “multi-year share gain and margin expansion story.” It was only last week that the analysts at JP Morgan raised the stock value of Advanced Micro Devices from $62 to $86 per share.

According to sources, AMD’s recently announced Xilinx acquisition would add 5 to 10 cents to its annualized earnings (EPS) once the addition achieves complete closure. It will also result in a 25 to 30 cents gain in the synergies. Analysts now believe that the deal will expand AMD’s footprint in the growing sectors, such as 5G wireless networks and automation vehicles.

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AMD’s recently revealed third-quarter earnings are no joke. The company earned $2.8 billion in revenue and registered an annual increase of 55.6 percent. Thus, beating the consensus expectations by 9.38 percent. Its computing and graphics segment garnered $1.67 billion, which is the leading gain by any company sector.

The increase in the payment is being credited to the rise in sales of AMD’s Ryzen processors. AMD’s enterprise, embedded, and semi-custom segment generated a massive revenue of $1.13 billion, resulting in annual growth of 116 percent. This growth was mainly due to higher semi-custom products’ sales and an increase in EPYC processor sales.


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