Right now, there is no hotter area to invest than artificial intelligence (AI). Over the last two years, AI's most lucrative opportunities have been concentrated in a small cohort of megacap tech stocks known as the "Magnificent Seven.
Advanced Micro (AMD) reported earnings 30 days ago. What's next for the stock?
In this video, I will cover the recent updates regarding Advanced Micro Devices (AMD -1.07%). Watch the short video to learn more, consider subscribing, and click the special offer link below.
Several top chip stocks have surged to new highs recently, but Advanced Micro Devices (AMD -1.07%) has trailed the pack. After surging to an all-time high of $227.30 earlier this year, the shares have fallen to $141.13 as of this writing.
Advanced Micro Devices, Inc. is undervalued at $138, with significant profit growth potential, especially in the booming data center segment. AMD's data center sales surged 122% YoY in Q3, driven by the MI300 accelerator, positioning it as a strong competitor to Nvidia Corporation. Despite short-term technical challenges, AMD's fundamentals are robust, with expected profit growth of 54% in 2024, making it a compelling investment.
Nvidia has been the clear front runner in the generative artificial intelligence race, with its stock surging 180% this year propelling it to become the world's most valuable company with a market cap of almost $3.5 trillion. However, trading at a lofty valuation of nearly 48x consensus FY2025 earnings, future gains could be harder to come by for Nvidia stock.
Advanced Micro Devices Inc AMD has certainly had its share of ups and downs lately, and right now, it's riding a significant bearish wave.
Recently, Zacks.com users have been paying close attention to Advanced Micro (AMD). This makes it worthwhile to examine what the stock has in store.
It's nearly impossible to read or listen to anything even remotely related to artificial intelligence (AI) and not find a reference to Nvidia. The company's graphics processing unit (GPU) chipsets are perhaps the single most important piece of architecture used in generative AI.
Advanced Micro Devices stock is likely to benefit from the expansion of high-performance computing and AI portfolio amid stiff competition from NVDA.
The excitement surrounding AI is the dominant narrative driving the markets in 2024 — but it would appear that a rising tide does not lift all boats — at least not equally.