Increased export restrictions to China and competition from NVIDIA negatively impact AMD stock

From Nasdaq: 2024-07-22 09:44:00

Zacks.com’s Analyst Blog discusses AMD, NVIDIA, MU, and MRVL stocks as U.S. plans to tighten chip export restrictions to China. AMD shares declined 14% following the report, along with other tech stocks. Marvell has the most exposure to China, while AMD faces stiff competition from NVIDIA leading to declining revenues in the near term.

AMD expects quarterly revenues to reach $5.7 billion with an estimated growth of 6%. The company’s AI chip spending is projected to grow significantly, benefiting AMD in the long run. Despite a stretched valuation compared to the industry average, AMD’s portfolio expansion initiatives and recent acquisitions position the company well in the AI and data center markets.

In conclusion, AMD’s near-term prospects are dim due to competition from NVIDIA and weak segments, but long-term growth potential remains strong. Investors are advised to wait for a favorable entry point while current AMD shareholders can expect rewarding growth prospects over time. For more stock recommendations, take a look at Zacks’ top stock picks which have shown impressive gains over the years.



Read more at Nasdaq: The Zacks Analyst Blog Highlights Advanced Micro Devices, NVIDIA, Micron Technology and Marvell Technology