Investing in AMD is favored over Wolfspeed due to strong performance in AI sector

From Nasdaq: 2024-12-21 04:22:00

The global AI market is set to reach $244 billion by 2025, with demand for semiconductors on the rise due to their crucial role in AI systems. Consider investing in Wolfspeed and AMD, two semiconductor companies poised for growth in the AI market.

Wolfspeed specializes in silicon carbide products that offer energy efficiency for AI operations. The company anticipates $3 billion in annual sales as demand for SiC products increases with the expanding AI market.

AMD focuses on accelerated computing to meet the demand for increased processing power in AI systems. The company saw a 122% rise in data center revenue, contributing to overall growth in sales. However, gaming-segment sales declined.

Despite potential government tariffs on semiconductor products, both Wolfspeed and AMD are well-positioned to benefit from the long-term growth in AI. Wolfspeed’s lower price-to-sales ratio suggests it may be the better value investment compared to AMD.

While Wolfspeed faces challenges like high costs and lack of profitability, AMD emerges as the superior AI investment due to its strong performance in accelerated computing and data center revenue growth. Consider AMD for long-term AI investment opportunities.



Read more at Nasdaq: Better Artificial Intelligence Stock: Wolfspeed vs. AMD