In March 2020, at a meeting with analysts, AMD management announced that the company would cover market segments with combined sales of up to 79 billion US dollars per year in the coming years. Wells Fargo specialists Considerthat the market situation has changed since then and, thanks to its steadily increasing market share, AMD can count on a presence in market segments with an annual turnover of at least 100 billion US dollars.
More specifically, experts believe it is necessary to resize the PC processor market from $ 32 billion to $ 40 billion and consider the potential revenue growth from the acquisition of Xilinx, which will give AMD access to a market with an annual capacity of at least $ 8, 5 billion also excellent prospects, its sales will grow by an average of 5-9% per year in the coming years. The company’s products are better represented in the cloud computing segment than in the corporate segment, which will give AMD good growth momentum in profile revenues. Overall, the company will be present in market segments with annual sales of at least 100-110 billion US dollars in three to five years.
AMD’s average revenue growth rate will reach 15% over the next few years, and even higher in the server segment. All of these will help increase the company’s profit margins. If it hits 45% in 2020, it will be quite capable of growing to 55% in a few years.
The current value of AMD stock is $ 132.14 per share, but Wells Fargo experts predict it will climb to $ 180. Colleagues from KeyBanc recognize The outlook for AMD stock is a bit meager at $ 155 apiece, but it points to the high potential of the brand’s products in the server segment for the current year. It should not be forgotten that, according to KeyBanc representatives, AMD also has good potential in the gaming segment to expand its market share.