From Nasdaq: 2025-01-17 17:15:00

Advanced Micro Devices (AMD) stock has struggled, losing 21% in 2024, while the PHLX Semiconductor Sector index gained 24%. AMD has underperformed the broader industry over the past five years, with a 141% gain compared to 170% for the index. Factors contributing to AMD’s underperformance include weak PC market demand, soft gaming console sales, and missing out on the AI trend. Two companies, Palantir Technologies and Arm Holdings, are poised to overtake AMD in market cap growth due to their strong AI presence and growth potential. Palantir’s stock has surged 301%, with a positive outlook for revenue growth, while Arm Holdings has witnessed a 100% gain and is dominant in the smartphone and IoT markets, with potential for continued growth in the semiconductor market. Analysts predict strong earnings growth for both companies in the coming years, indicating potential for outperformance compared to AMD.



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