Advanced Micro Devices, Inc. AMD operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming and Embedded segments.
It is set to report its Q4 2024 earnings on February 4. Wall Street analysts expect the company to post an EPS of $1.09, up from $0.77 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $7.54 billion, up from $6.17 billion in the previous year.
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If You Bought AMD Stock 10 Years Ago
The company's stock traded at approximately $2.45 per share 10 years ago. If you had invested $10,000, you could have bought roughly 4,082 shares. Currently, shares trade at $121.46, meaning your investment's value could have grown to $495,755 from stock price appreciation. AMD has never paid dividends.
If you had invested $10,000 in AMD stock 10 years ago, you would have achieved a total return of 4,858%. In comparison, S&P 500 total return for the same period is 229.97%.
What Could The Next 10 Years Bring?
AMD has a consensus rating of "Buy" and a price target of $183.53 based on the ratings of 32 analysts. The price target implies more than 51% potential upside from the current stock price.
On Oct. 29, 2024, the company announced its Q3 2024 earnings. Revenues were $6.8 billion, beating analyst estimates of $6.71 billion, as reported by Benzinga. The chipmaker reported third-quarter earnings of 92 cents, in line with analyst estimates.
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"Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute," said Lisa Su, chair and CEO of AMD.
AMD expects fourth-quarter revenue of approximately $7.5 billion, plus or minus $300 million. The company's revenue guidance represents year-over-year growth of 22% at the midpoint.
Adjusted gross margin is expected to be approximately 54% in the fourth quarter, in line with third-quarter adjusted gross margin.
Check out this article by Benzinga, which looks at Advanced Micro Devices’ recent unusual options activity.
Given AMD stock’s historical stock price appreciation and expected upside potential of 51%, growth-focused investors may find it attractive.
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