Dear Reader,
Advanced Micro Devices, Inc.(AMD) the multinational semiconductor company that develops computer processors is currently valued at 62.40 billion USD.
AMD's stock price has staged a remarkable rally in the past 5 years. In my opinion, the rally has been mainly driven by the usage of AMD's computer processors and graphics processors in cryptocurrency mining. According to various sources AMD's new computer and especially graphics processors fly off the shelves the moment they are stocked to be used to mine cryptocurrencies.
The process of cryptocurrency mining involves large scale computing power to validate and produce cryptocurrencies so people can sell them for USD and enrich themselves.
AMD's stock price is currently around 53 USD. I forecast AMD's stock price could triple to nearly 159 USD. The main driver will be the usage of computer processors and graphics processors in cryptocurrency mining. In the last two quarters AMD's revenue grew more than 40% quarter on quarter on an yearly basis. If this trend of revenue expansion continues, AMD's stock market capitalization could easily triple from current levels.
I must say that if AMD's stock price really triples in the next 2-3 years, AMD would be grossly overvalued in the mid-term on intrinsic value basis. Yes, in the next 10 years AMD could grow into a valuation of 185 billion USD, but not in the next 2-3 years.
Disclaimer: The blogposts and
comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook
etc.) are not investment recommendation, are provided solely for
informational purposes, and do not constitute an offer or solicitation to buy
or sell any securities. The opinions expressed on the blog are Petar
Posledovich's.Petar Posledovich does not
guarantee the accuracy of the information presented on this blog and social
networks. The information presented is "as is".
Petar Vladimirov
Posledovich is not liable for any investment losses incurred by reading and
interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may
possess some of the securities, currencies or their derivatives mentioned in
the blogpost and
posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
No comments:
Post a Comment