Can AMD Outperform the Market in 2017?
AMD fell 6.5% in the last week
Advanced Micro Devices (AMD) stock fell 6.5% in the week ended January 13, 2017. AMD has generated significant investor returns over the last year. In 2016, AMD stock rose 295% and 370% in the trailing 12-month period, respectively, even though it posted negative earnings per share (or EPS) and had a huge debt pile lying on its balance sheet.
AMD’s peer NVIDIA (NVDA) rose over 200% in the last 12 months. As seen below, semiconductor (SMH) stocks Marvell Tech (MRVL) and Micron (MU) also posted returns of over 50% YoY (year-over-year) in 2016.
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Strategic goals for 2017
Now, AMD aims to meet its 2017 objectives by making its comeback in the high-end graphics and computing market. AMD’s CEO, Lisa Su, has streamlined the company’s focus on advanced technology in fast-growing markets.
Su also optimized the CPU (central processing unit) and GPU (graphics processing unit) roadmap for the company’s Computing business, which has leveraged Global Foundries’s 14nm (nanometer) process node to develop a next-generation CPU and GPU.
AMD recently unveiled its next-generation GPU, Vega, which it plans to launch in 1H17. It also unveiled its long-awaited Ryzen CPU, which it plans to launch in 1Q17. By targeting high-end markets, AMD aims to improve its margins and cash flows.