Is AMD Stock a Buy Now?
Advanced Micro Devices (NASDAQ: AMD) recently finalized its acquisition of Xilinx, and shares are down nearly 35% from recent all-time highs of $164.46. The stock market has been spooked so far in 2022 due to inflation, interest rates, and geopolitical risks. I believe there are many attractive stocks at these levels for long-term investors, and I'm going to explain why AMD is one of those diamonds in the rough.
The acquisition of Xilinx does several things for AMD, most importantly expanding its footprint into data centers, cloud computing, and the metaverse. The global data center market is expected to grow to $519 billion by 2025, a compound annual growth rate (CAGR) of 21%, and I believe AMD is well positioned to capture a decent portion of this growth. In fact, AMD recently announced a partnership with Meta Platforms (NASDAQ: FB), formerly known as Facebook, to help run its data centers to power the metaverse.
The below video provides AMD stock analysis, including bullish and bearish items to consider. Additionally, I provide opinions on the stock price and the long-term prospects of the business. Please watch and don't forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of March 15, 2022. The video was published on March 15, 2022.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Cuka owns Advanced Micro Devices and Apple. The Motley Fool owns and recommends Advanced Micro Devices, Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
