Without a doubt, the first quarter will turn out to be one of the biggest on record. While the kind of double-digit growth we saw likely is unsustainable, many top Wall Street strategists feel that the overall economic strength could last well into 2023. The combination of massive stimulus, continued low interest rates still buoyed by the ongoing quantitative easing, and the reopening tailwind that is driving consumption and spending will keep the momentum in place for the foreseeable future.
This week, four mega-cap technology companies reported incredible results. While two stocks jumped higher, two others were greeted with selling despite the stellar results. For long-term aggressive growth investors, all four are still offering outstanding entry points. While it may make sense to scale buy the shares of the two that shot higher, all can be bought by those with a time frame of 12 to 18 months in mind.
BofA Securities has Buy ratings on all four, but it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This top semiconductor company has been on fire and crushed expectations. Advanced Micro Devices Inc. (NYSE: AMD) operates as a semiconductor company worldwide. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services. They also include server and embedded processors, and semi-custom system-on-chip products, development services and technology for game consoles.
AMD provides x86 microprocessors for personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen, Threadripper, AMD A-Series, AMD FX, AMD Athlon, AMD Athlon PRO and AMD Pro A-Series processors brands. It provides microprocessors for notebook and 2-in-1s under the AMD Ryzen, AMD A-Series, AMD Athlon, AMD Ryzen PRO, AMD Athlon PRO and AMD Pro A-Series processors brands, as well as microprocessors for servers under the AMD EPYC and AMD Opteron brands. Its chipsets are sold under the AMD trademark.
The company reported outstanding results, with data center revenue doubling. The BofA Securities analyst said this:
Solid beat and raise with calendar 2021 sales growth now 50% year-over-year (vs. 37% prior); We reiterate our buy rating and raise the price objective with a path to long-term earnings-per-share of $4+. Like: improving supply; product cycles (Milan, Ryzen 5000, consoles, Radeon 6000); 1.3% to 4% of market share gains in first quarter 2021 estimated. Risks: tough PC compares post double-digit growth in 2020/21 estimated; growing competition from Intel (new CEO) and Arm based CPUs.
The BofA Securities price target on the shares was raised to $110 from $100. The Wall Street consensus target is $102.50. The final Advanced Micro Devices stock trade for Wednesday came in at $84.02 a share.