The best tech stock to buy right now is AMD.

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Even fast-growing, successful IT companies had a rough 2022. The market is hyper-focused on valuations and recession risk. The Fed's aggressive interest rate rhetoric has heightened worry.

Advanced Micro Devices (NASDAQ: AMD) is a semiconductor jewel that's being mistreated. This is a fast-growing enterprise with rising profit margins.

AMD's semiconductors have been gaining ground on Intel's for over a decade. During the 2008-09 recession, the corporation took tough decisions. AMD opted to unload its fab section (now GlobalFoundries) and focus on chip design.

That has given AMD the resources to progressively erode into Intel's processor dominance, a lead even Intel CEO Pat Gelsinger admits could shrink in the next couple of years. This isn't limited to PCs and laptops.

AMD went from being unprofitable a decade ago to being lucrative now. This increased profitability has helped fund additional acquisitions, including corporate server startup Pensando. The mega-merger with Xilinx (the leader in FPGAs) in 2022 gave AMD a new front against 

AMD might also gain gaming market share. Long-time gaming GPU leader Nvidia (NASDAQ: NVDA) launched its next generation of high-end graphics cards in September (the RTX 4080 and RTX 4090). Many gamers lambasted the price tag as "too exorbitant." 

The semiconductor business is growing rapidly. Global chip demand could exceed $1 trillion by 2030, 60% more than currently. That's good news for Intel stockholders and all chip stocks. AMD could benefit most from its diversified components, many of which boast technological superiority.

AMD's short-term metrics may indicate a decent buy. AMD expects 60% year-over-year revenue increase in 2022, while Intel predicts a drop. This is partly due to the Xilinx acquisition, but not entirely. AMD's growth is independent. AMD projected 31% growth this year before Xilinx.

End-June, AMD has $6 billion in cash and short-term investments and $2.8 billion in debt. Despite its expansion, shares are down 50% this year. The stock is 32 times trailing 12-month free cash flow. This seems fair for a corporation with growing sales and profit margins and years of industry expansion ahead.

This suggests you're not worried about near-term stock market instability and want a chip stock to hold for several years. If so, AMD is a "great stock to purchase"

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