AMD is about to update investors on its artificial intelligence chips.
STOCK CLOSES AT THE HIGH OF THE DAY AFTER DROPPING IN PRICE BEFORE THE ALERT
In the most recent trading session, Advanced Micro Devices (AMD) closed at $157.90, indicating a +1.24% shift from the previous trading day.
AMD's stock is the only one of select AI names with a lower forward multiple now than its five-year average.
They say it's harder to stay on top than to make it to the top of any industry. In the world of artificial intelligence (AI) powered supercomputers, the undisputed lion on top of the mountain is NVIDIA Co. NASDAQ: NVDA, with an estimated 94% market share of AI chips or GPUs.
These companies' share prices are discounted considering the long-term potential in semiconductors and cloud computing.
These hot growth stocks may not be running out of steam just yet.
Advanced Micro Devices stock (NASDAQ: AMD) is expected to publish its Q3 FY'24 results toward the end of October, reporting on a quarter that is likely to see the company benefit from stronger demand for artificial intelligence chips. We expect AMD revenues to come in at $6.73 billion, marking an increase of 16% compared to last year, while earnings are likely to come in at about 0.92 per share, slightly ahead of consensus estimates, and up 30% year-over-year.
Advanced Micro Devices is a top contender in the AI chip market.
Advanced Micro Devices is catching up to Nvidia at a rapid pace.
Taiwan Semiconductor Manufacturing Company Ltd. TSMC is seen singularly lifting the semiconductor space in premarket trading on Thursday.
NVIDIA's Blackwell GPUs are sold out, indicating robust demand for AI-boosting hardware, but AMD's MI325x and upcoming MI350 series show promising value. Despite NVIDIA's dominance, AMD's technological advancements and potential for market share growth make it a compelling investment, especially with the AI revolution accelerating. AMD has historically been valued cheaper than NVIDIA, but its recent progress suggests it may experience solid growth driven by its latest MI environment.