Prediction: Investors Will Be Happy if They Buy AMD Stock Before the Company's Big AI Event on July 22
AMD looks like a buy ahead of its Advancing AI event.
Overview
Advanced Micro Devices (NASDAQ: AMD) stock has pulled back from its highs, but i think buying the stock ahead of its July 22 Advancing AI event in San Francisco will be a smart move. It looks like there will be a few catalysts from the event that could help propel the stock higher, including raised guidance and a major new customer announcement.
The first big catalyst could be raised guidance, both for the near term and long term. AMD typically reports its second-quarter results in early August, and it wouldn't be surprising to see the company pre-announce strong Q2 results at this event. Bank of America analyst Vivek Arya recently said he expects a beat-and-raise quarter from AMD, given "exceptional" demand for server processors and the company's central processing units (CPUs) continuing to take market share. Meanwhile, Jefferies analyst Blayne Curtis thinks AMD could match Nvidia's call for a $200 billion total addressable market (TAM) for data center CPUs, up from its earlier projection of $120 billion. This would help lift its long-term outlook.
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Originally published at www.fool.com.