AMD Stock: Can You Become a Millionaire?

(CTN News) – In recent years, Advanced Micro Devices (NASDAQ: AMD) has become one of the more notable comeback stories.

In the middle of the last decade, it was regarded as dead, however, under the leadership of CEO Lisa Su, it has become one of the world’s leading manufacturers of CPUs, GPUs, and embedded chips.

As AMD progresses in the field of artificial intelligence, its stock price is expected to rise 127% by 2023. It is, however, necessary to examine the semiconductor stock closely in order to determine whether it is likely to generate millionaires in the future.

A review of AMD’s current state

It has been a tremendous success story for AMD stock under Su and it has the potential to go much higher in the future. In 2014, Su began focusing the company’s efforts on CPUs and GPUs. Su’s vision took time to materialize because product development timelines in the semiconductor industry usually take three years or more.

During that time period, however, the company’s CPUs were more powerful than Intel’s. Using its GPU technology, it powers Sony PlayStations and Microsoft Xboxes. As a result of its GPUs and data center technologies, the company has taken market share away from Nvidia in some cases.

Furthermore, AMD released its Instinct MI300A accelerator chip and MI300X GPU at exactly the time when it looked like Nvidia would dominate AI chips. AMD claims its MI300X GPU to be faster than Nvidia’s H100.

The new offerings have stoked investor optimism, resulting in the semiconductor stock reaching 52-week highs in late December. In the past year, AMD stock has more than doubled in value.

The difficulty of minting millionaires from here

The process of turning small investors into millionaires would require a level of growth that is beyond the imagination of most. The market capitalization of AMD has reached almost $220 billion as a result of the company’s recovery, making it a megacap.

For an investor to earn $1 million if he or she purchased $10,000 worth of AMD stock today, the market capitalization would have to reach nearly $22 trillion. As of the time of this writing, Apple, the stock with the highest market capitalization, has a market capitalization of approximately $3 trillion, less than one-seventh of this figure.

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