Advanced Micro Devices, Incorporated is an American semiconductor manufacturing company based in Santa Clara, California. The company has various product lines such as personal computer products, laptop computers, motherboards, digital printers and other electronic equipments. It was founded in 1976 by two men named Robert J. Katzel and Charles D. Krueger. They formed a company to produce the first microchip-based computer chip.
In the third quarter of fiscal year 2021, the company recorded a loss before depreciation and tax of $5.3 million due to stock price fluctuations. Due to this, the Board of Directors declared a dividend of a record on the outstanding shares of stock at the last quarterly meeting. The Board also decided to issue its final dividend of one penny per share. The dividend is paid on April fifth each year.
AMD stock prices have been fluctuating since late last year due to changing economic conditions. The stock market suffered from the global recession which caused companies to reduce their production. Many people also lost jobs and companies were forced to downsize and close down operations. However, these problems did not have a significant impact on AMD stock price. In the third quarter of fiscal year 2021, the overall profit margin rose from the first quarter to over twenty five percent. The increase in profit was mainly contributed to higher sales of AMD’s advanced devices’ stock.
According to analysts, AMD will be in a strong position to counter the challenges in the fourth quarter of its fiscal year. The stock markets are expecting the chip designer to release its new high-end desktop chips in the next two to three years. However, analysts are not too optimistic about the forecast as there is a low chance that the chip designer will succeed in its goal to enter the lucrative personal computer hardware market. In the last three months, there are signs that the stock market is expecting AMD to release its new desktop chips in the next two years.
Analysts believe that the stock market may move negatively during the next three to six months. They believe that AMD stock will hit bottom between July and November, depending on the market conditions at the time. If the chip designer releases its new high-end desktop chip in the second half of this year, it will increase the competition in the personal computer hardware market. AMD stock will likely fall by between ten and fifteen percent in the next six months. However, if the stock market is expecting an announcement of a new high-end desktop chip from AMD, the stock will probably fall by more than forty percent.
AMD stock is expected to post higher earnings per share during the first and third quarters of this year. However, the chip designer is facing fierce competition from companies like Intel and ARM in the mobile computing market. It is also facing stiff competition from companies in China that have already released their own chips using AMD’s processor technology. It is expected that during the fourth quarter of this year, AMD will miss its financial forecasts, which would result in a significant loss for shareholders. You can check the income statement of AMD at https://www.webull.com/income-statement/nasdaq-amd before investing.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.