Artificial intelligence (AI) has dramatically altered the value propositions of both Nvidia (NVDA -1.81%) and Advanced Micro Devices (AMD -1.96%).
When it comes to semiconductor stocks, it's virtually impossible not to think of Nvidia. Over the last two years, the company has become the undisputed leader among chip stocks, and with that, is swiftly emerging at the forefront of the pack among artificial intelligence (AI) companies more broadly.
Every decade seems to create a new wave of growth stocks that benefit from the latest trends in the economy. The last 20 years have created tremendous wealth for investors who jumped early on the growth of e-commerce (Amazon), streaming video (Netflix), and electric cars (Tesla).
The U.S. stock market has posted an impressive performance in 2024, with the benchmark S&P 500 crossing the 6,000 point mark in November 2024. Technology stocks have been a significant factor propelling the S&P 500.
AWS has not committed to offering cloud access to AMD's AI chips in part due to low customer demand. AWS said it was considering offering AMD's new AI chips last year.
AMD benefits from a strong portfolio, strategic acquisitions, and robust data center demand amid stiff competition from NVIDIA.
In today's video, I discuss recent updates affecting Advanced Micro Devices (AMD -1.42%). To learn more, check out the short video, consider subscribing, and click the special offer link below.
Nvidia is the leading supplier of graphics processing units (GPUs) for data centers, which are used to develop artificial intelligence (AI) models. At the time of this writing, its stock has soared 187% year to date, because the company is delivering incredible revenue growth as chip demand continues to outstrip supply.
A warning from Chinese industry groups to local companies to avoid US chips could have a negative impact on a variety of chipmakers including Qualcomm Inc (NASDAQ:QCOM, ETR:QCI), Intel Corp (NASDAQ:INTC, ETR:INL) and Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD), analysts at Wedbush believe. Four major Chinese industry associations have advised local companies to avoid purchasing US chips, stating they are “no longer safe.
Advanced Micro Devices NASDAQ: AMD has experienced considerable market volatility in recent months. While AMD's earnings report for the third quarter of fiscal year 2024 (Q3 FY2024) was solid, surpassing revenue expectations, AMD's stock price initially fell as much as 18% due to concerns about valuation and competition.
Advanced Micro Devices, Inc. (NASDAQ:AMD ) UBS Global Technology and AI Conference December 3, 2024 2:15 PM ET Company Participants Forrest Norrod - EVP and GM of the Data Center Group at AMD Conference Call Participants Timothy Arcuri - UBS Timothy Arcuri Good afternoon. I'm Tim Arcuri.
Advanced Micro Devices, Inc.'s Q3 2024 earnings pullback is a dip-buy opportunity due to strong AI and data center momentum, with data center revenue surging 122% YoY. Significant customer wins with Meta and Microsoft validates AMD's AI capabilities, positioning it for continued market share gains and robust growth in AI accelerators. AMD's valuation, despite being higher than the sector median, is justified by its exceptional execution, strong profitability metrics, and superior growth prospects in AI and data centers.