Over the last few years, Nvidia (NVDA -4.10%) benefited enormously from the increased investment in chips for artificial intelligence (AI), but news out of China is causing investors to wonder if the stock's high valuation is worth it ahead of potential risks to the massive investment big tech companies have put into data center infrastructure.
AMD shares fell to a 1-year low this week due to DeepSeek's AI chat assistant news, but I believe demand for AMD's AI products will remain strong in 2025. I doubled my AMD position because the market is irrational and AMD is gaining ground in the AI accelerator market with surging Data Center revenues. AMD's aggressive AI investments are paying off, showing significant Data Center revenue growth, and the stock is trading at a near-50% discount to its historical P/E ratio.
AMD: Make Or Break Moment Fast Approaching Amid DeepSeek Selloff
So you've got $1,000 (or $10,000 or $50,000) burning a hole in your pocket -- and you want to invest in some growth stocks. Great! Remember that it's best to spread your dollars across a bunch, so as not to have too many eggs in any one basket.
Advanced Micro Devices (AMD) closed the most recent trading day at $114.43, moving -0.5% from the previous trading session.
Melius Research analyst Ben Reitzes downgraded Advanced Micro Devices AMD from Buy to Hold and lowered the price target from $160 to $129.
There's more to DeepSeek than utilizing cheaper methods for A.I. platforms, according to Oliver Blanchard.
Advanced Micro Devices (NASDAQ:AMD) fared better than most chipmakers during the tech sector rout on Monday.
Melius downgraded shares of chip maker Advanced Micro Devices to Hold from Buy, and cut the target price to $129 from $160.
AMD and Intel are fiercely competing in the x86 CPU market, with AMD gaining market share in 2024 despite Intel's performance improvements. Intel's Arrow Lake CPUs show superior performance in PCs, but AMD's Turin CPUs lead in servers, with AMD expected to maintain its market share. The rise of Arm-based CPUs from companies like Apple and Qualcomm poses a significant threat to x86 CPU market growth for both AMD and Intel.
Melius Research sees ever more competition from Nvidia, which could hit the “profit pools” of AMD and Intel.
Advanced Micro Devices (AMD -6.37%) has been a top performer in the semiconductor industry over the last decade. The fabless chip stock has grabbed market share from Intel PCs and is now competing in the data center AI graphics processing unit (GPU) market, though Nvidia remains the dominant force in that industry.