AMD Stock Shows Resilience Amid Supplier Delays

Advanced Micro Devices, Inc (AMD) saw its stock price climb on Tuesday, which may come as a surprise given the recent news that two of its key suppliers, Samsung Electronics Co (SSNLF) and Taiwan Semiconductor Manufacturing Co (TSM), are delaying their production plans.

Financial Projections for AMD

Despite potential setbacks from supplier issues, financial experts are predicting a significant revenue for AMD in the coming fiscal year. Analysts have pegged AMD's revenue forecast for fiscal year 2023 at $22.63 billion, which is slightly below the $23.6 billion reported for fiscal year 2022.

Industry Analysts Show Confidence in AMD

In the face of stiff competition from Nvidia Corp (NVDA), analysts from Rosenblatt, Goldman Sachs, and B of A Securities have maintained a positive outlook on AMD's prospects. They highlight the company's MI300 Data Center GPU, which is expected to find robust adoption in cloud and enterprise sectors.

Goldman Sachs analyst Toshiya Hari has anticipated AMD's early triumphs in Data Center GPUs will contribute to a successful year for its server CPU business.

Meanwhile, B of A Securities' analyst Vivek Arya has predicted that AMD could capture between 5% to 10% of a forecasted market growth, which could see the Data Center GPU and CPU market expand to $150 billion to $400 billion by 2027. Arya is optimistic about AMD's potential to gain market share within the booming $100 billion+ accelerator market, while also making progress in server CPUs against competitors such as Intel Corp (INTC).

AMD's Market Performance

Year-to-date performance has seen AMD's stock rise 122%, which, although impressive, trails behind Nvidia's staggering 245% rise and the 55% increase of the Invesco QQQ Trust, Series 1 (QQQ). However, AMD stocks still experienced an uptick, showing resilience in the market with a 1.18% increase to $141.25 according to last Tuesday's check.

AMD, stocks, revenue