Amd Stock Surge Higher

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Amd Stock Surge Higher

Amd Stock: Will It Surge After Ibm Partnership?

It looks like the stock market will also close this year on a strong note. And this will be fueled by big names like Palantir, Nvidia, and GE Aerospace.

Amidst all of this, there's another stock which has gained a lot, and it's Advanced Micro Devices (AMD). The AMD stock gained 25% upside during 2023 and 2024. In fact, AMD is also up by more than 36% so far this year, which is a very good return.

Amd'S Balance Sheet Has Improved

One reason which helped AMD was that it had joined forces with IBM. Together, both companies will work on developing a quantum supercomputer.

This is a sign that both companies are now gearing up to claim a bigger slice of the AI and quantum market. Especially with IBM now on board, it feels like AMD now has a solid chance.

That's why Truist Securities has also changed the AMD rating from Hold to Buy. At the same time, they have set a new price target of $213 for AMD's stock.

In addition, the net margin of AMD is also near 6.4%, which is almost double. The company has also managed to beat its revenue forecasts during the last 5 years in a row.

Even the balance sheet of AMD has improved as the debt has gone down from $4.73 billion to just $3.89 billion. At the same time, the free cash flow has improved, which is a good thing.

With so much going on, it is totally worth it to look at the IBM stock for potential investment. But it's also worth noting that the competition in the chip market is very brutal.

That's why, even if a potential investor picks AMD stock, the diversification should always be at the top of mind. So despite the risks, there's no doubt that AMD presents a great opportunity for those who want to join the quantum and AI race.

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