Advanced Micro Devices, Inc. (NASDAQ:AMD) is planning to enhance the production of graphics cards, to meet the strong market demand, which are currently in short supply.
The chip-maker company recently launched RX Vega GPUs, which have virtually disappeared from shelves, due to the increasing popularity among investors and enthusiasts of crypto mining gaining.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s revenue from the Graphics Division has attained almost a billion dollars in the last quarter of 2017. Which ultimately recognizing the shortages, hence the company is trying to satisfy both miners and gamers.
Increased prices of bitcoin, and the other cryptos have actually lured the new investors and ordinary enthusiasts, to enter into the mining business and GPUs are mainly used to mine altcoins like Monero and Ethereum, that also require more moderate computing power.
The sudden rise in cryptocurrency mining during the past year, has actually compelled companies like Advanced Micro Devices, Inc. (NASDAQ:AMD) to address the rising demand for hardware components.
“The graphics channel is very low, and we are certainly working to replenish that environment”, said CEO Dr. Lisa Su, quoted by Polygon. Because the availability of graphics cards is “lower than we would like it to be,” she added:
We are ramping up production. Speaking to investors during a conference call, Dr. Su presented the latest corporate earnings report, referring to the cryptocurrency mining market as a good part of AMD’s business. Advanced Micro Devices has announced $1.48 billion USD of revenue in the fourth quarter of 2017. $958 million of that total came from its Computing and Graphics division, where the year-on-year increase reached 60%. Sales of graphics cards, like the new Vega 56 and Vega 64, have been a key factor.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock on Friday traded at beginning with a price of $13.05 and when day-trade ended the stock finally declined -6.04% to reach at $12.45. Analyst’s mean target price for AMD is $14.81 while analysts mean recommendation is 2.60. Stock value has moved between $9.73 – 15.56 in last one year.
Analyst’s ratings play a very important role in outlining a stock’s performance. Let us check out how analysts have ranked AMD based on current scenarios. Stock has got OUTPERFORM rating from 4 analyst(s) whereas last month 4 analyst(s) have given outperform rating. SELL rating has been given by 1 analyst(s) and 6 analyst(s) given BUY rating to the stock. Company fiscal year is ending in December and analysts’ consensus recommendation is Hold for AMD and estimated EPS for next quarter is 0.07.
Advanced Micro Devices, Inc. (NASDAQ:AMD) yearly performance is 1.38% and net profit margin is 0.80%. Annual EPS Growth of past 5 years is 15.20%. The current share price indicates that stock is -20.45% away from its one year high and is moving 28.35% ahead of its 52-week low.