Digitimes speculated last week that Advanced Micro Devices (NASDAQ:AMD) will see a big second-half sales boost. As shipments for graphics and CPUs increase, AMD may finally report revenue at levels investors waited on for many years.
In late May, AMD might announce the third generation of Zen 2. The Rome server could get a launch of mid-2020. Investors should exercise some caution: the second generation Zen 2 launch did not lift sales as fast as markets initially expected. Still, any product refresh is positive for the company and for the stock price.
On the GPU side, a mainstream Navi release in the third quarter will lead to higher revenue growth. Current Polaris GPUs are getting old and unable to compete with Nvidia’s (NASDAQ:NVDA) current GTX cards. And AMD’s Radeon 7 are expensive products that target high-end markets.
Exercise Caution
AMD gets another free pass on the market on hopes of significant growth ahead. The actual GPU and CPU refresh is happening soon but sales will be modest but steady. AMD stock is in overvalued territory but is not likely to dip by much because it is a trader’s favorite.
For value investors, wait for a stronger correction in AMD shares before buying the stock.
Tech Insider
