Advanced Micro Devices (NASDAQ: AMD) is in a peculiar position. The chipmaker has long been the main rival of stock market darling Nvidia (NASDAQ: NVDA) in terms of high-end GPUs.
A recent sell-off in artificial intelligence (AI) stocks should serve as an important reminder to investors not to ignore valuations. There is a lot of demand for AI-related products and services, and concerns about whether the tech sector is once again overspending on growth are valid.
As founder of Coatue Management, Philippe Laffont oversees $26.9 billion invested in more than 80 stocks, and though he buys players across many sectors, one in particular stands out. The billionaire is known for his investments in innovative companies, and he's generally found them in the area of technology.
Advanced Micro Devices' Q4 performance is likely to have been hurt by weakness in the Embedded and Gaming segments, offset by strong Data Center and Client growth.
Get a deeper insight into the potential performance of Advanced Micro (AMD) for the quarter ended December 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
Corporate America just kicked off a new quarterly earnings season. Over the next few weeks, hundreds of companies will report their latest financial results, but Wall Street will be most focused on those leading the artificial intelligence (AI) race.
Semiconductor giant Advanced Micro Devices has massively underperformed the broader market in recent quarters and is sitting at a key technical level ahead of its upcoming quarterly report. While negative revision trends and the emergence of new threats in the form of DeepSeek to the AI CAPEX boom support Mr. Market's bearishness, AMD looks enticing based on fundamentals. In this report, we preview AMD's Q4 2024 report and look at its updated long-term risk/reward.
Advanced Micro Devices (AMD 2.79%) has had a forgettable run in the past year. As of this writing, the chipmaker has lost 35% of its value, which is in stark contrast to the 23% gains logged by the PHLX Semiconductor Sector index over the same period.
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.