- AMD stock (NASDAQ: AMD) is up 152% year-to-date and CEO Lisa Su sees stronger years ahead.
- The firm won contracts from both Xbox and PS5, re-establishing its dominance in the semiconductor industry.
- Better technology has allowed the company to position for an extended rally.
The semiconductor giant’s stock has increased by 152 percent year-to-date, re-establishing its dominance as a semiconductor powerhouse. Even after such a large rally in 2019, the company is expected to perform stronger in 2020.
Since Lisa Su took over AMD as CEO in 2015, the company saw a 1,000% increase in its stock price.
3 factors driving the AMD rally
AMD’s solid performance throughout 2019 and the past three years can mainly be attributed to three major factors: distribution of chips to major tech conglomerates and consoles, rising market share, and better technology.
This year, AMD’s introduction of the Zen 2 chip series was well received by both the public and experts. The firm revealed 7-nanometer processors that have the potential to outperform Intel’s 14-nanometer chips.
The deployment of higher performance computing chips positioned AMD to gradually take market share in the desktop, laptop, and server processor market in the upcoming years.
As said by Su, AMD expects its supply of chips to gaming consoles including the highly anticipated PS5 and Xbox Series X to contribute to the company’s growth in the upcoming year.
“2020 is going to be a big year for consoles,” said Su, emphasizing that the “best is yet to come” for AMD over the next five years.
Why investors raising targets for AMD
Despite being a dominant force in the semiconductor industry for decades, AMD still remains relatively small when compared with the likes of Intel and Nvidia.
As of December 25, the market valuation of AMD stands at $51.83 billion. That is a valuation three times smaller than that of Nvidia and less…