Advanced Micro Devices AMD shares have underperformed Nasdaq 100 despite gaining AI market share this year. Should you buy or sell the stock as its technical analysis indicates a downtrend?
We're just days away from ringing in the new year, and the holiday break can be a good time for investors to review their portfolios and examine potential opportunities for 2025. Artificial intelligence (AI) was a dominant theme in the stock market during 2024, and tech giants are poised to spend a record amount of money developing the technology over the next 12 months.
AMD is poised for strong growth driven by AI model inferencing with MI300X GPUs, with a TAM for AI accelerators projected to reach $500B by 2028. AMD's Data Center segment saw 122% YoY growth in Q3'24, fueled by EPYC and Instinct product sales. Management is targeting a 1-year cadence for new product launches. AMD is closing the performance gap with Nvidia as the MI350 will have comparable performance with the Blackwell GPUs.
AMD's stock price had a difficult year in 2024, even as it gained some market share in the artificial intelligence (AI) industry. It crashed by 45% from its yearly highs and formed a death cross in November, pointing to more downside.
Following a sharp rebound in 2023, the capital markets have been scorching hot this year -- with the S&P 500 and Nasdaq Composite gaining 24% and 30%, respectively, as of market close on Dec. 20.
The rise of artificial intelligence (AI) in 2024 has reshaped our world in ways previously confined to science fiction. Virtual assistants now handle complex customer service queries with human-like understanding, while AI-powered chips process vast amounts of data at unprecedented speeds.
AMD's shares have dipped below $120 recently, presenting an attractive risk profile despite the creation of negative investor sentiment. AMD's Data Center segment shows promising growth potential with the MI300X chip, positioning it to compete with Nvidia's dominance in the AI GPU market. AMD's valuation at a P/E ratio of 24.4X offers a 22% discount compared to Nvidia, making it an attractive buy before a potential recovery.
In the most recent trading session, Advanced Micro Devices (AMD) closed at $126.29, indicating a +1.36% shift from the previous trading day.
In today's video, I will be talking about the recent updates regarding Qualcomm (QCOM 0.36%). Watch the short video to learn more, consider subscribing, and click the special offer link below.
In today's video, I discuss Advanced Micro Devices (AMD 0.58%) and other semiconductor stocks that long-term investors should keep on their watch lists. To learn more, check out the short video, consider subscribing, and click the special offer link below.
Nvidia and AMD's participation in xAI's funding round means they are directly financing a rival to their major customers.
In 2024, semiconductor stocks generally saw outsized returns on account of the artificial intelligence boom. Well, most of them did, anyway — with notable exceptions including Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD).