We recently published Market Beaters: 10 Stocks Defying the Odds. Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best-performing stocks on Wednesday.
Advanced Micro Devices jumped by 9 percent on Wednesday to end at $258.89 apiece as investor sentiment was fueled by its new long-term strategy aimed to gain a stronger foothold in the $1 trillion compute market.
In a statement on the same day, Advanced Micro Devices Inc. (NASDAQ:AMD) said it is targeting to achieve more than 35 percent in revenue compound annual growth rate (CAGR); over 35 percent growth in non-GAAP operating margin; and at least $20 in non-GAAP earnings per share.
Across its businesses, it expects CAGR for the data center segment to grow by more than 60 percent, while its embedded and client, and gaming businesses are expected to grow by more than 10 percent.
“AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum,” said Advanced Micro Devices Inc. (NASDAQ:AMD) Chairman and CEO Lisa Su. “With the broadest portfolio of products and our deepening strategic partnerships, AMD is uniquely positioned to lead the next generation of high-performance and AI computing. We see a tremendous opportunity ahead to deliver sustainable, industry-leading growth. We have never been better positioned.”
In the third quarter of the year, Advanced Micro Devices Inc. (NASDAQ:AMD) saw net income jump by 61 percent to $1.243 billion from $771 million in the same period last year, while revenues increased by 35.5 percent to $9.246 billion from $6.819 billion year-on-year.
While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
