Advanced Micro Devices, Inc. Stock Is Near Its 10-Year High; Should You Buy Now?

How Long Will AMD's Competitive Advantage Last?

Many were not confident on AMD's chances to field a product that could give Intel a run for its money but that has changed with the Ryzen launch. As a Fudzilla post states "it is naive not to expect that AMD Ryzen won’t lose some benchmarks to Intel, but with great pricing and positioning, AMD is kickstarting its way back to the market." Intel could compete with AMD by reducing its prices and there are question marks over whether AMD can compete with Intel in the long run. For now, AMD is all set to gain market share as Intel has failed to move to 10nm chips in time, and is not offering any incremental gains in its new generation of chips continuing its "tick-tock" philosophy. This Seeking Alpha post reaffirms the belief that AMD could keep Intel at bay for a much longer time. The investigation of the post's author reveals that "there’s a reasonable path to 7nm volume production at Global Foundries, implying 7nm AMD chips in 1H’19 or 2H’19. This would surpass Intel’s timeline, and keep AMD competitive, as it introduces stop-gap technologies to keep Zen architecture relevant up until 2020." This makes one believe that the competitiveness of AMD's product line-up may not be as short-lived as the AMD bears would like you to believe.

Putting It All Together.

All the latest developments do point that AMD's turnaround is not all hype and speculation. The upcoming product market launches would definitely boost AMD's revenues and profits. The initial response looks very promising. With Vega and Naples launches still in the pipeline, AMD stock has a lot of tailwinds and growth catalysts going for it. To go long on AMD stock near its 10-year high price levels could be a risky play but it may turn out to be a rewarding one as well. If the company continues to deliver promising products in line with the hype and speculation, then AMD stock rally is set to continue. 

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Disclosure: Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a ...

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