AMD facing challenges in AI market against Nvidia, but still potential for growth

From Nasdaq: 2024-12-29 05:24:00

AI infrastructure spending is on the rise, benefiting tech companies like AMD. Despite this, AMD’s stock hasn’t seen significant gains compared to Nvidia. AMD’s sales rose 18% in Q3, with data center revenue soaring 122% to $3.5 billion. The company expects Q4 sales to increase by 22% to $7.5 billion.

AMD faces challenges despite AI growth. Revenue declines in gaming and embedded segments, along with Nvidia’s dominance in the AI semiconductor market, may impact AMD’s performance. With a forward P/E ratio of 25.1, AMD’s stock may be volatile as investors assess its long-term AI potential against Nvidia.

Investors looking for cheap AI stock may consider AMD, with a forward P/E ratio of 25.1 compared to Nvidia’s 32.6. AMD’s position in the AI market may be uncertain, but its stock could be a good buy for those willing to weather volatility. Consider the company’s long-term potential in AI and its GPU battle with Nvidia.

Stock Advisor’s analysts recommend AMD as one of the top 10 stocks to buy right now. With AMD on the list, investors may find value in the company’s potential growth in the AI market. AMD’s inclusion in this list suggests strong growth prospects for the company in the near future.



Read more at Nasdaq: Where Will Advanced Micro Devices Be in 1 Year?