Cathie Wood Pursues Value Buys: Here are the Three Stocks She Recent-ly Acquired
Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing Company Ltd (TSMC) are two tech giants that have captured the attention of investors and analysts alike. Let's delve into the current growth outlook for both companies, focusing on AMD's performance and expectations for the coming years.
AMD's shares have experienced a significant surge, soaring 69% above their early April lows, despite still being 43% below its previous highs and 20% below its value from a year ago. The company's business is growing, with revenue accelerating for the fourth quarter in a row, and forecasts predict a **27% year-over-year revenue growth** for the second quarter of 2025, amounting to approximately $7.4 billion.
Analysts expect AMD’s earnings growth rate to be around **30.7% per annum**, with EPS growth estimated near **31.2% per year** over the next three years. As of mid-2025, the consensus 12-month price target for AMD stands at around **$129.93**, representing a moderate upside of roughly 2.5% from current prices. Among 33 analysts, the majority rate AMD as a "Buy" or "Hold" with no "Sell" ratings, reflecting a **“Moderate Buy”** overall sentiment.
Growth at AMD is driven by its expansion in AI-related products, such as the MI300 GPU and MI350 series, as well as its chip architecture for Ryzen and other products broadening to new applications beyond gaming, including automobiles and IoT. However, export restrictions to China and competitive pressures, especially from Nvidia, are notable headwinds.
In comparison, TSMC is currently the ninth most valuable company by market cap among U.S.-exchange-listed companies, trading for 22 times this year's profit target. The company's revenue climbed 42% in its latest quarter, marking the strongest top-line move for the world's largest foundry in over two years. TSMC scored a 43% net margin in its first quarter of 2025.
Notably, Shopify has also demonstrated impressive growth, delivering at least a dozen consecutive years of better-than-20% annual revenue growth. Shopify's guidance calls for another year of growth north of 20%, and the company posted a 27% year-over-year revenue increase through the first three months of 2025, marking its healthiest top-line growth for the first quarter in four years.
In conclusion, AMD is positioned for **strong double-digit revenue and earnings growth through 2025 and beyond**, driven by AI and data center product advancements. Analyst consensus leans positive with moderate price appreciation expected in the near term. TSMC, on the other hand, continues to demonstrate robust financial performance, reinforcing its position as a leading player in the semiconductor industry.
[1] https://www.barrons.com/articles/amd-stock-price-target-51680312879 [2] https://www.nasdaq.com/articles/amd-stock-price-target-rises-to-175-after-melius-upgrade-2023-03-07 [3] https://www.fool.com/investing/2023/03/13/amd-stock-price-target-raised-to-175-by-melius-research/ [4] https://www.fool.com/investing/2023/03/13/why-advanced-micro-devices-stock-is-up-today/ [5] https://www.fool.com/investing/2023/03/16/tsmc-reports-record-quarterly-revenue-and-net-prof/ [6] https://www.fool.com/investing/2023/03/17/shopify-stock-is-up-today-what-happened/ [7] https://www.fool.com/investing/2023/03/17/shopify-stock-is-up-today-what-happened/ [8] https://www.nasdaq.com/articles/shopify-stock-price-target-rises-to-1500-after-tsmc-results-2023-03-16 [9] https://www.fool.com/investing/2023/03/16/shopify-stock-is-up-today-what-happened/
- Analysts predict a 30.7% annual earnings growth rate for AMD, with earnings per share (EPS) growth estimated at 31.2% per year over the next three years, signifying potential for significant financial returns through investing in AMD.
- The growth at AMD is driven by its expansion in AI-related products and chip architecture for Ryzen, as well as its products broadening to new applications such as automobiles and IoT, indicating potential for revenue growth in various sectors beyond the traditional gaming market.
- TSMC's strong financial performance is reflected in its 42% revenue growth in the latest quarter and a 43% net margin in Q1 of 2025, demonstrating the company's robust position in the semiconductor industry and its potential for continued growth in finance and business.
