Nvidia stock up 187% in 2024, but AMD emerging as strong competitor in AI market

From Nasdaq: 2024-12-05 04:23:00

Nvidia’s stock has surged 187% this year due to high demand for its GPUs in data centers for AI development. AMD has launched its own AI GPUs, attracting some of Nvidia’s top customers, creating competition. AMD’s new chips offer better performance, but Nvidia remains ahead with faster chips and new product launches.

AMD dominates the AI chip market for personal computers, with its Ryzen AI 300 Series offering industry-leading performance. Its revenue from AI-related segments grew significantly, with expectations for continued growth in 2025. Despite a decline in gaming segment sales, AMD’s overall revenue is strong, driven by GPU sales.

Wall Street analysts are bullish on AMD stock, with a majority rating it a buy. Price targets indicate potential for a 31% upside in the next 12-18 months. AMD’s earnings per share are expected to soar in 2025, with a forward P/E ratio lower than Nvidia’s. AMD’s growth potential in AI PCs makes it an attractive investment opportunity.

Investors are advised to consider buying into AMD, as it presents a potential opportunity for growth in the AI industry. AMD’s stock has the potential to soar, with strong performance in AI-related segments. The company’s position in the market and future growth prospects make it a compelling investment option for the new year.



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