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Key Points
Advanced Micro Devices (NASDAQ: AMD) has seen its share prices rise significantly, with free cash flow increasing by 386% since 2023. This growth is attributed to strong demand for AMD’s high-end chips, particularly in data centers for artificial intelligence (AI) applications. The company targets a massive addressable market for its data center chips, potentially driving the stock price above $500 within five years.
In the third quarter, AMD reported a 36% year-over-year revenue growth, fueled by the anticipated launch of its MI400 series data center chips. Analysts project that AMD’s free cash flow could rise from $2.4 billion to nearly $23 billion by 2029, with the company’s AI partnerships expected to generate over $100 billion in revenue.
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