Should Investors Consider AMD As Chip Makers Shoot Higher?
With the technology industry seeing impressive growth in recent years, those looking to take advantage of this sector-specific growth trend have looked to customer-facing software companies for some time now as indicative of increased growth rates in this sector. That being said, the companies which provide the hardware and functionality needed for such networks to operate often have not received the same amount of love from investors over time.
I have commented on my belief that both Intel Corporation (NASDAQ:INTC) and Apple Inc. (NASDAQ:APPL) will continue to outperform over time, however I also believe that smaller chip makers such as Advanced Micro Devices Inc. (NASDAQ:AMD) will be able to ride this wave much higher, given the competitive position of smaller chip makers in higher-margin niches of this sector.
AMD is a producer of high performance chips, and has traditionally traded at a much higher valuation multiple than its more mature peers. That being said, the company's recently release earnings which have blown the socks off of many investors, as well as statements from the company that it will be pursing blockchain technology as a growth avenue moving forward, have reignited interest in the smaller players in this sector at what appears to be the right time.
The number of short-term catalysts should not be underestimated for AMD, and while the company is certainly not cheap at current levels, as a speculative play, I could see a very prudent bull case for owning AMD shares for a 12-month period or less.
Invest wisely, my friends.