By Sagar V. Mankar Advanced Micro Devices (AMD) has undergone a remarkable transformation over the past half-decade. The leading chipmaker has charged up the rankings of the S&P 500’s largest companies, surging from triple digits to a spot in the top 25.
Massive Market Cap Increase
In 2017, AMD was valued at around $10 billion and ranked 222nd in the S&P 500 by market capitalization.
Fast forward to 2023/24, and AMD now boasts a market cap exceeding $300 billion for the first time ever.
The company’s share price reached new a new high on March 2, 2024, closing at nearly at $202 (Nasdaq index).
This translates to a market valuation of $311 billion – a staggering 3000% increase from 2017/18 levels.
AMD’s stock has risen over 127% in 2023 alone as demand for semiconductors remains red-hot.
Surpassing Tech Titans
AMD’s meteoric rise up the ranks of the S&P 500 means it has surpassed many established tech giants.
Five years ago, it lagged far behind the likes of Intel, IBM, and Oracle.
Now it stands ahead of all of them in the top 25, even besting Adobe and Netflix.
The only semiconductor stocks ranked higher than AMD are NVIDIA and Broadcom.
With AI and cloud computing fueling growth, AMD aims to continue climbing the ladder.
Propelled by Product Innovation
AMD’s charge has been fueled by strong product sales, especially its Ryzen processors and Radeon graphics chips.
The company has released a string of new GPUs and CPUs that outperform rivals like Intel.
In the AI/deep learning space, AMD’s new Instinct MI300X GPUs are generating strong demand.
Cloud computing and data centers are snapping up Epyc server chips.
AMD is winning market share across PCs, gaming, and the enterprise.
Outlook Remains Bright
With AMD’s products leading the way in performance and efficiency, its future looks bright.
Demand for semiconductors used in AI, cloud, 5G, gaming, and other areas is booming. AMD is poised to continue growing at a rapid clip.
Though challenges like supply chain issues persist, AMD’s innovative product pipeline ensures they will remain a semiconductor leader.
Five years from now, don’t be surprised to see Advanced Micro Devices in the top 10 of the S&P 500 touching the $1 trillion mark.
Source: MarketWatch