Advanced Micro Devices (AMD +11.44%) recently finalized its acquisition of Xilinx, and shares are down nearly 35% from recent all-time highs of $164.46. The stock market has been spooked so far in 2022 due to inflation, interest rates, and geopolitical risks. I believe there are many attractive stocks at these levels for long-term investors, and I'm going to explain why AMD is one of those diamonds in the rough.
The acquisition of Xilinx does several things for AMD, most importantly expanding its footprint into data centers, cloud computing, and the metaverse. The global data center market is expected to grow to $519 billion by 2025, a compound annual growth rate (CAGR) of 21%, and I believe AMD is well positioned to capture a decent portion of this growth. In fact, AMD recently announced a partnership with Meta Platforms (FB 1.18%), formerly known as Facebook, to help run its data centers to power the metaverse.
The below video provides AMD stock analysis, including bullish and bearish items to consider. Additionally, I provide opinions on the stock price and the long-term prospects of the business. Please watch and don't forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of March 15, 2022. The video was published on March 15, 2022.
