A semiconductor company providing a range of chips for various computing applications, Advanced Micro Devices (NASDAQ:AMD) is a growth company the likes of which are hard to come by today. Despite what may seem like a high volume of skyrocketing growth stocks out there today, AMD’s growth has been more than backed up by its underlying fundamentals.
Accordingly, right now I think AMD is one of the premier growth stocks investors should consider in the large-cap technology sector. This company just posted its fifth consecutive quarter of double-digit revenue growth, spurred by a rise in its game console, PC, and server operating lines. I think these sectors are likely to continue to show strength for years to come, and AMD is well-positioned to capitalize on these trends as a higher-quality, higher-margin play on this sector.
I think AMD is a stock that has a ton of momentum relative to peers like Intel Corporation (NASDAQ:INTC), for this reason. This isn’t a cheap stock by any means, however, I think AMD is much better positioned to take a larger chunk of the pie over time. Market share growth could propel this stock much higher over the medium to long-term, making the current share price look cheap.
Of course, AMD is a stock that needs to continue to outperform in terms of growth to see these kinds of gains. Downside risks always exist with perfectly priced stocks like these, so I’d caution investors to keep position sizes small on high-flying stocks like these right now. Indeed, staying patient and buying on dips moving forward may be the best approach right now.
Invest wisely, my friends.
