When it comes to the advanced graphical processing units (GPUs) that are powering the AI revolution in data centers, there really are only two games in town: NVIDIA NASDAQ: NVDA and Advanced Micro Devices NASDAQ: AMD. Both make GPUs used to do the complex computational work required for AI and machine learning.
Jim Cramer has been quite the advocate of buying the dip in certain semiconductor stocks caught in the latest slump.
Will Advanced Micro Devices' Advancing AI 2024 event be a catalyst for the stock?
GlobalFoundries Inc. NASDAQ: GFS is a leading global semiconductor foundry that manufactures chips designed by its clients, mostly semiconductor companies. GlobalFoundries was originally a subsidiary of Advanced Micro Devices Inc. NASDAQ: AMD but was spun off because it was more cost-effective to outsource leading-edge chip production to Taiwan Semiconductors Manufacturing Co. Ltd.
AMD is undervalued and poised for growth, especially in the AI segment, with the potential for better-than-expected Q3 earnings and robust future guidance. Despite recent volatility, AMD trades at an attractive valuation, around 29 times next year's EPS estimates, and is 33% off its 52-week high. AMD's AI chips, designed to compete with Nvidia's, are expected to drive significant revenue growth, narrowing the market share gap in the AI data center space.
Advanced Micro (AMD) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Advanced Micro Devices stock (NASDAQ: AMD) gained close to 6% in Thursday's trading and also remains up 6% year-to-date. This compares to rival Intel stock which has seen its stock decline by about 55% this year.
Advanced Micro Devices (NASDAQ: AMD) ranks among the key artificial intelligence (AI) stocks that have attracted interest in recent months while also facing competition from other players in the sector with the potential to offer profits for investors.
I decided to upgrade AMD to "Buy" due to its relative underperformance and potential growth in data centers and AI products. Read on. AMD's Q2 FY2024 showed strong revenue growth in Data Center and Client segments, despite declines in Gaming and Embedded products. AMD's liquidity remains strong with $5.3 billion in cash, significant free cash flow, and strategic acquisitions like Silo AI to enhance AI capabilities.
Advanced Micro Devices, Inc.'s MI300 accelerator is driving explosive data center sales growth, narrowing the gap with Nvidia and promising significant profit surges in the coming quarters. AMD's data center sales grew 115% YoY in 2Q24, with the MI300 accelerator and EPYC server CPUs as key growth catalysts. AMD is projected to grow profits 50% faster than Nvidia next year, making it a potentially better value investment at a lower profit multiple.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
AI stocks, especially semiconductor companies like Nvidia, have outperformed the S&P and Nasdaq since 2021 but come with high volatility and risk. The SOXX ETF offers a better risk-return ratio compared to the leveraged SOXL, making it a safer choice for investors. Reducing volatility to 14% for individual stocks like Nvidia, Broadcom, and AMD can still yield impressive returns while managing risk.