AMD and Rivals Show Strong Growth Projections for Investors

AMD's stock surge highlights strong business turnaround potential. The company aims for robust EPS and revenue growth, showcasing a promising future amid competitive threats from Arm and Micron.

Date: 01-03-2025

AI Rating: 7

Earnings Per Share (EPS): Advanced Micro Devices (AMD) has shown a notable improvement in EPS, which grew at a CAGR of 21% over the last six years and is projected to grow at a CAGR of 73% from 2024 to 2027. This indicates a robust trajectory in earnings, which could positively influence stock valuations.
Revenue Growth: AMD's revenue also demonstrated a strong CAGR of 17% from 2014 to 2024, with expectations for 20% CAGR from 2024 to 2027 driven by the stabilization of the PC market and increasing sales of data center CPUs and GPUs. This consistent growth in revenue is a positive indicator for investors.
Net Income: While net income is not explicitly discussed, it can be inferred from the turnaround to profitability in 2018 and strong projected earnings growth.
Free Cash Flow (FCF): The text does not provide specific information regarding Free Cash Flow.
Return on Equity (ROE): No information is provided regarding Return on Equity.
Comparison with Rivals: The report highlights Arm Holdings and Micron Technologies as significant competitors that are also expected to exhibit strong growth in EPS and revenue, which adds a layer of competitive dynamics in the sector. Arm is forecasted to have an EPS CAGR of 83% and revenue growth of 23%, while Micron anticipates a staggering EPS CAGR of 150% and a revenue growth of 21%. This competitive landscape may affect investor sentiment regarding AMD's stock price and market cap growth as it faces potential challenges to maintain its position in the market.

Stocks: AMD ARM MU INTC NVDA META