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AMD stock price strengthens amid inspiring news
At a financial analyst event, AMD confirmed plans to release the Ryzen Threadripper 7000 High-Performance Desktop (HEDT) processors. These chips will hit the market in 2023. They will be based on the Zen 4 architecture.
This news influenced the current stock price of AMD.
AMD’s new processor
Ryzen Threadripper 7000 processors will be able to offer up to 96 physical cores with support for up to 192 virtual threads. They will be manufactured using TSMC’s 5nm process and will replace the current Chagall series (Ryzen Threadripper Pro 5000WX) used in high-end workstations.
Since the Ryzen Threadripper 7000 will have the same number of cores as the EPYC Genoa server processors, they will likely use the same dies, but with some disabled blocks.
What also says for the uptrend of the AMD after hours stock price is that the Ryzen Threadripper 7000 series of processors will use the new processor socket. There are no details yet, but according to rumors, it will be called Socket TR5 or SP5r2. The current TR4 connector has been used by all generations of Threadripper, on the Zen, Zen 2, and Zen 3 architectures. The new platform will likely receive the same long-term support from AMD.
Apparently, the Ryzen Threadripper 7000 will have a large area, as you can see if you look at the image of their packaging.
What’s AMD stock price today? Did it change?
After reading such a pleasant thing you may wonder “what’s the price of AMD stock?”. At the time of writing the price tag is $96. Thus the AMD stock price today is quite affordable for the majority of investors.
AMD’s Q1 2022 results once again delighted investors, with sales forecast for the full year 2022 up 10% above market expectations.
AMD’s revenue grew by 49%, the result was 6.8% above the consensus forecast of analysts and 10% above the initial forecast of management. EPS rose by 77%, which exceeded analysts’ estimates by 21%.
AMD stock price prediction for 2025
As of today, analysts have an AMD stock target price. It is $87.57.
The 200-day moving average is the resistance level ($70.5709).
50-day moving average – resistance level ($81.97).
Given the AMD stock price target, we can confirm that AMD’s share price is declining. This fall should be regarded as a natural downward correction, during which an exit price for buying these securities can be formed.
New benefits of owning AMD shares
By the way, AMD’s long-term financial model includes intentions to increase the return of capital to shareholders. This means that you can count on not only growth of the AMD pre market stock price and regular share buybacks from the market but also good dividends. The company is going to spend more than 40% of its annual free cash flow on these needs. At the same time, further purchases of strategically important assets and technologies are not excluded. The staff of specialists involved in development and research will be expanded.
Turning to what’s the price of AMD stock, the company’s CFO explained what factors will drive AMD’s profit margin growth over the long term.
First, the acquisition of Xilinx alone would already lift the figure from last year’s 48% to 52%.
Second, going forward, the server, gaming, and PC markets, as well as new product types for server systems, including embedded, will be responsible for margin growth.
Finally, optimization of the product mix and cost savings will provide the remaining gains in profit margins.
Undoubtedly all of this will pump the AMD pre-market stock price in the nearest future.
AMD stock price chart and earnings
The rate of return included in AMD’s long-term financial model reaches 57%, while it ended last fiscal year with a figure of 48%. Progress in this area will be achieved by increasing the share of more expensive products, by optimizing costs and increasing the current stock price of AMD.
Operating expenses are planned to be kept within the range of 23 to 24%.
The operating profit margin will approach 35%, while at the end of last year it did not exceed 25%.
Profitability in terms of free cash flow is planned to increase from the current 20 to 25% or more.
We add that the company ended last year with a free cash flow of $3.2 billion, which allowed it not only to plan the purchase of strategically important assets but also to think about returning capital to investors through dividends and buybacks of its own shares.
The takeover of Xilinx, according to AMD’s forecasts, will increase not only the AMD after-hours stock price but also the revenue from the sale of server and embedded solutions from $4 billion to $8 billion, which in share terms corresponds to progress from 25% to 40% of total revenue. AMD’s forecasts for the current fiscal year are also optimistic.
Revenue is expected to increase by 60% to $26.3 billion, the profit margin will reach 54%, and operating expenses will be kept at 24% of revenue. Everything is for the AMD stock price chart to show profits to investors. Also you can see Qqq stock price chart and Meta stock chart.