By
Tolu Ajiboye
February 1st, 2024
Advanced Micro Devices stocks are up 35.72% in the past year. However, they have declined approximately 23.19% YTD.
Advanced Micro Devices Inc (NASDAQ: AMD) shares have closed Monday trading at $110.53, up 2.16 percent after closing the market. The gains stabilized during the pre-market session with gains of approximately 0.33%. Among other factors, the gains were bolstered by news that AMD intends to acquire data center optimization startup Pensando for approximately $1.9 billion.
AMD and Pensando
The company has reportedly experienced a significant uptick in chipset demand over the past few years. Moreover, there have been notable delays in electrical products supply due to chip shortages globally. As a result, AMD has taken advantage of emerging opportunities, especially in high-performance computing.
“To build a leading-edge data center with the best performance, security, flexibility, and lowest total cost of ownership requires a wide range of compute engines,” said Dr. Lisa Su, AMD chair and CEO. “All major cloud and OEM customers have adopted EPYC processors to power their data center offerings. Today, with our acquisition of Pensando, we add a leading distributed services platform to our high-performance CPU, GPU, FPGA, and adaptive SoC portfolio. The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software, and platform level which expands our ability to offer leadership solutions for our cloud, enterprise, and edge customers.”
A lot of businesses have leaped forward toward technology adoption. Most of which rely on cloud-based storage of data. Furthermore, the Covid pandemic has crippled most businesses around the world and most are coming back through technological means.
Advanced Micro Devices Outlook
This is not the first high-profile acquisition that AMD has undertaken in the past few years. Earlier, the company announced the acquisition of Xilinx to help in high-performance computing.
With this high-profile acquisition, the company has convinced investors of its capacity to deliver on the rising demand for semiconductor chipsets.
Hereby contributing to the company’s mixed earnings in the past two years. According to market analytics provided by MarketWatch, Advanced Micro Devices stocks are up 35.72 percent in the past year. However, they have declined approximately 23.19 percent YTD.
The company has a reported market valuation of approximately $176.06 billion and 1.63 billion shares outstanding. In the past 52 weeks, AMD shares have ranged between 72.50 and 164.46.
Having been rated 38 times, AMD shares received an average rating of Over according to a survey conducted by MarketWatch.
Additionally, the ratings gave AMD stock market an average recommendation of Overweight and an average target price of $151.
The company is however trapped by global geopolitical wars that are separating military superpowers. For instance, the Russia-Ukraine war has contributed to supply chain disruptions