From Nasdaq: 2024-04-13 06:29:00

Artificial intelligence (AI) boosted Nvidia to a $1 trillion valuation last year with a 239% stock increase thanks to high demand for AI data center chips. Now valued at $2.2 trillion, Nvidia sits behind Apple and Microsoft in the world’s top companies. Advanced Micro Devices (AMD) could soon join the trillion-dollar club as an emerging competitor in AI chips, valued at $270 billion currently. AMD’s MI300 lineup for data centers is gaining traction in the AI market, potentially generating $3.5 billion in sales in 2024. With a strong foothold in AI-enabled computers, AMD predicts significant revenue growth in the coming years.

The semiconductor industry’s cyclical nature impacts revenue growth for companies like AMD, even with strong AI prospects. Wall Street analysts foresee revenue growth for AMD, expecting $25.8 billion in 2024 and $32.5 billion in 2025 — although AMD raised its own MI300 sales forecast significantly, surpassing initial expectations. Based on a promising revenue growth trajectory and strong sales, AMD is on a mathematical path to join the trillion-dollar club alongside leaders like Nvidia, Apple, and Amazon.

Investing in Advanced Micro Devices now could hold significant potential for future gains as the company makes strides in the AI chip market. While not on the Motley Fool’s list of top 10 stocks, AMD’s projected growth and expansion in the industry could lead to substantial returns in the long run. Considering AMD’s current valuation, strategic developments, and AI innovations, investors may witness substantial growth as the company inches closer to a trillion-dollar status.



Read more at Nasdaq: 1 Unstoppable Stock That Could Join Nvidia, Microsoft, Apple, Amazon, Alphabet, and Meta in the $1 Trillion Club