Summary: Consider investing in AMD as a strong alternative to Nvidia in the AI chip market.

From Nasdaq: 2024-10-11 06:00:00

1. Nvidia remains a top AI stock choice due to its market lead in AI chips, but its valuation may deter some investors. Consider looking into AMD (NASDAQ: AMD) as a strong alternative with AI chip offerings that are gaining traction, including recent wins like Oracle choosing AMD’s chips for its OCI Compute Supercluster instance.

2. While AMD’s financials show slow growth in revenue and net income, its data center segment has seen significant growth, positioning the company as a formidable competitor in the AI chip market. The upcoming release of the MI325X chips and the CDNA architecture in 2025 could further boost AMD’s standing in the industry.

3. Despite slower stock price growth compared to Nvidia, AMD’s stock could have great potential for growth with its lower price-to-sales ratio and a strong foothold in the AI chip market. Investing in AMD now, especially before potential growth catalysts, could lead to significant returns compared to its competitors.



Read more at Nasdaq: 1 Top Artificial Intelligence (AI) Stock to Buy Right Now (Hint: It’s Not Nvidia)