Stock prices don’t fully reflect the value of a company, but rising stock prices normally mean the company is on The Road, such as AMD. In the meantime, AMD’s share price has soared, with a market capitalisation of more than $90 billion and will soon exceed $100 billion.
When it comes to AMD’s share price, it can be said that the Semiconductor Industry in the U.S. stock market is a counter-example, the current CEO Su Qifeng in the fall of 2014 officially took charge of AMD, when AMD’s share price hovered around $3, in 2015 even fell to an all-time low of $1.70, when it was said to be internal and external troubles.
But AMD has survived, with the launch of Ryzen processors in 2017, AMD’s business is on track, with a full recovery in the desktop, notebook and server sectors, and the share price seems to be on a rocket, breaking through to more than $40.
That’s not finished, AMD’s share price has risen even harder this year, falling below $50 at the start of the year and falling back to $40 in March when U.S. stocks plunged, but in four months AMD has doubled to $80, already surpassing the peak of the 2000 U.S. stock market crash.
AMD’s market capitalisation yesterday, which was just over $90 billion, is now $94 billion, a short-term rise from its $100 billion forecast, which could be seen as a milestone in AMD’s capital markets.
It’s worth noting that the $100 billion market value means AMD is close to half the market value of its old friend Intel, which still has a market capitalisation of $200 billion and 7-10 times AMD’s revenue, but AMD’s prospects are more high-profile, at least in the stock market.