The Advanced Micro Devices (AMD) stock price soared to an all-time high as investors remained optimistic about the company’s prospects. The stock is trading at $129, which is about 80% above the lowest level this year. It has risen by more than 55% year-to-date, bringing its market capitalization to more than $156 billion.

AMD stellar performance

AMD is a fast-growing semiconductor company that is well-known for its central processing units (CPUs). 

In the past few years, the company has gone through an exciting transformation to become one of the best-known chip companies. This transformation started in the early 2010s when the firm decided to exit its foundry business. It did that by selling the division to Mubadala. That division, known as GlobalFoundries, went public last week and is valued at more than $34 billion.

The transformation was then supercharged in 2014 when Dr Lisa Su became the company’s Chief Executive. Since then, AMD has managed to organically take substantial market share from Intel, the current market leader. 

AMD has also been helped by the many missteps made by Intel. For example, Intel has postponed the launch of its 7nm chips until 2022. This is notable since AMD has been selling its 7nm chips for years. As such, many power users like gamers and data centers have moved from Intel to AMD. The chart below shows that the company has been growing its market share.

Intel vs AMD

Analysts believe that AMD will be able to close that gap in the coming years. This trend will be helped by the company’s acquisition of Xilinx. The acquisition is expected to close in 2022. Xilinx manufactures logic boards that can be programmable. It had more than $3.47 billion in revenue in 2020 and a net income of more than $600 million.

AMD earnings

The AMD stock price has also rallied because of the company’s recent earnings. The company announced that its revenue soared to $4.3 billion in the third quarter. This was a 54% year-on-year growth and was better than what analysts were expecting.

AMD also managed to increase its gross margins by about 440 basis points to about 48% while its operating income more than doubled to more than $1 billion. This revenue was driven by the 44% increase in the Computing and Graphics segment, whose revenue rose by 23% to $384 million. At the same time, its Enterprise, Embedded, and Semi-Custom segment’s revenue rose to more than $1.1 billion. 

Meanwhile, the company expects that its revenue will rise to more than $4.5 billion in the fourth quarter. For the year, data compiled by SeekingAlpha shows that analysts expect that its revenue will rise to more than $16.10 billion. It will then rise to $18.61 billion in 2022.

Analysts are generally bullish on the AMD stock price. For example, those at BMO Capital Markets expect that the stock will rise to $140. Similarly, those at JP Morgan see it rising to $135. Analysts at Truist, Cowen, and Wedbush have a buy rating on the stock.

AMD stock price forecast

The daily chart shows that the AMD stock price has been in a strong bullish trend lately. The shares rose to an all-time high on Wednesday. By doing so, it managed to move above the key resistance level at $122, which was the previous all-time high. The stock is also being supported by the 25-day and 50-day moving averages. At the same time, the MACD and the Relative Strength Index (RSI) have been rising. Therefore, the bullish trend will likely continue as bulls eye the key resistance at $160.

The AMD daily price chart with the MACD indicator confirming the bullish trend