Politicians heavily investing in AMD face competition from Nvidia, with mixed financial performance

From Nasdaq: 2024-05-21 07:55:00

Examining stocks traded by U.S. politicians as a strategy has gained popularity, offering insights into policymakers’ decisions. Politicians like McCaul and Gottheimer have heavily invested in AMD, with around $345,000 bought vs. $49,000 sold. Despite this, AMD faces tough competition from Nvidia in the computing market, which reflects in its financial performance.

AMD competes across various sectors but struggles against Nvidia in the data center market. While AMD’s revenue showed mixed results in Q1, it barely turned a profit. Wall Street predicts modest growth for AMD in 2024, but its higher valuation than Nvidia despite lower performance raises concerns. Politicians buying AMD stock doesn’t change the fundamental business outlook, prompting caution from investors.

Consideration of investing $1,000 in Advanced Micro Devices should include recognizing that it wasn’t among the 10 best stock picks identified by the Motley Fool Stock Advisor team. They recommend other stocks with greater potential for returns based on historical performance. Notably, Nvidia made the list in the past, highlighting the potential for significant returns over time with the right investment choices.



Read more at Nasdaq: 1 Stock Politicians Are Buying Hand Over Fist