Advanced Micro Devices (NASDAQ: AMD) has become one of the more notable comeback stories in recent years. Left for dead in the middle of the last decade, it has become a leader in CPU, GPU, and embedded chips under the leadership of CEO Lisa Su.
With it making advancements in the AI field, AMD stock is on an upward trajectory, rising 127% in 2023. However, determining whether the semiconductor stock can mint millionaires from here requires a closer look.
The state of AMD
AMD stock has benefited from a tremendous level of success under Su and has the potential to go much higher. When Su took over in 2014, she limited the company’s focus to CPUs and GPUs. Since product development timelines in the semiconductor industry take at least three years, Su’s vision took time to bear fruit.
Nonetheless, in that time, the company’s CPUs surpassed the performance of those of longtime rival Intel. In the GPU field, it won contracts to power Sony‘s PlayStation and Microsoft‘s Xbox. Additionally, its GPUs have helped it gain traction on Nvidia in some cases, and helped its data center technologies take market share from Intel.
Moreover, just when it looked like Nvidia would dominate AI chips, AMD released its Instinct MI300A accelerator chip and the MI300X GPU, which AMD claims is a faster chip than Nvidia’s H100.
These new offerings have stoked investor optimism, taking the semiconductor stock to 52-week highs in late December. Over the last year, AMD stock has more than doubled.
Why minting millionaires from here may be a struggle
Unfortunately, turning small investors into millionaires would take a level of growth beyond the imaginations of many. With AMD’s recovery, its market cap has reached almost $220 billion, taking it into mega-cap status.
If an investor bought $10,000 worth of AMD stock today, the market cap would have to reach nearly $22 trillion for that position to become $1 million. Currently, the stock with the highest market cap, Apple, has a market cap of around $3 trillion, less than one-seventh that amount.
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Also, AMD’s financials would have to make…
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