AMD and ServiceNow Show Significant Upside Potential

AMD and ServiceNow have unveiled potential for impressive growth. AMD's stock could see a 40% upsurge from current levels, while ServiceNow's shares could elevate by 18%, driven by positive market sentiment and strategic operations.

Date: 06-02-2025

AI Rating: 7

Market Valuation and Earnings Potential
Palantir has achieved a noteworthy market value of $230 billion, with AMD and ServiceNow projected to exceed this in upcoming years. AMD is expected to reach a market value of $405 billion, driven by its target price of $250. Meanwhile, ServiceNow aims for a market cap above $290 billion, based on Citigroup's target price of $1,426.

Earnings Per Share (EPS) and Revenue Growth
AMD's non-GAAP earnings rose 42% to $1.09 per diluted share, showcasing the company’s solid performance in terms of profitability. The total revenue for AMD saw a 24% increase to $7.6 billion, which is promising amidst competitive pressures. For ServiceNow, revenue increased by 21% to $3 billion, with non-GAAP net income growing 18% to $3.67 per diluted share. However, both companies show indications of underperformance regarding sales expectations. AMD's data center sales were below analyst forecasts, and ServiceNow narrowly missed sales estimates. This could impact investor sentiment, despite overall growth figures.

Market Outlook and Analyst Ratings
The projections suggest that AMD and ServiceNow are well-positioned, although they face external competition challenges. AMD contends with Nvidia and Broadcom while ServiceNow navigates a competitive IT solutions market. The forecasted adjusted earnings growth is anticipated to be 43% for AMD over the next four quarters, while ServiceNow is expecting 18%. These anticipated growth rates indicate potential for EPS expansion in both companies, although the market valuations appear premium in relation to earnings.

Stocks: NASDAQ:AMD NYSE:NOW