AMD stock price

Around five years ago, chip manufacturer Advanced Micro Devices, Inc. (NASDAQ:AMD) struggled, but then the company engineered a remarkable turnaround, and since then, the stock has generated as much as 1400% for its investors. The turnaround commenced after the appointment of Dr. Lisa Su as the Chief Executive Officer back in 2014.

Su diversified the company’s offerings considerably and helped AMD in generating considerable revenues from gaming chips. Prior to that, the company had generated most of its revenues from personal computer chips. The cryptocurrency mining book was also a major factor behind the popularity of its chips.

Impressive Strategy

The reboot in the company’s strategy led to remarkable growth and the launch of new products. Hence, it is only natural for people to wonder about the trajectory of AMD over the course of the next half a decade. One of the important things to point out in this regard is that AMD’s growth slowed down last year, largely due to the declining sales of Play Station 4 and Xbox One gaming consoles. Analysts on Wall Street have projected that in 2020, the company is going to generate 30% growth and 19% in the year after that. There are two important factors that could help the company in hitting those growth projections.

Sony and Microsoft are all set to launch their new gaming consoles by the end of 2020. Both will use chips made by AMD, and it will be the same for the cloud-based gaming platforms like Google’s Stadia and Microsoft’s xCloud. If these products can generate impressive sales, then it could help AMD in generating healthy growth. On the other hand, it is expected that AMD’s Ryzen and Radeon chips are going to further close the gap with products from Intel and NVIDIA. If that happens, then it could prove to be another major factor behind the company’s growth. Experts believe that it is unlikely that AMD is going to generate the sort of growth it did in the next five years, but that is still yet to be seen.

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