From Nasdaq: 2025-05-05 12:00:00

Semiconductor stocks have had a tough year, with the VanEck Semiconductor ETF falling by 13% as of April 30, more than double the S&P 500 losses. Nvidia’s market value dropped by nearly $1 trillion, presenting growth opportunities. However, AMD, at $100 a share, could be a hidden gem in the chip market.

AMD’s revenue and net income increased by 14% and 92% in 2024, but there’s more to the story. The data center and client segments saw significant growth, while gaming and embedded segments declined. AMD’s data center business, competing with Nvidia, is a key area of focus for the company’s future success.

As AMD gains traction in the AI chip realm, major players like Oracle, Meta Platforms, and Microsoft are turning to AMD for their AI infrastructure. With next-generation GPU architectures and custom silicon solutions, AMD is poised to challenge Nvidia on pricing, potentially leading to commoditization of GPUs in the future.

Despite its smaller size compared to Nvidia, AMD is making strides in the data center business, positioning itself for future growth. With a forward P/E ratio lower than Nvidia and a market cap of $160 billion, AMD offers investors a potentially undervalued opportunity in the semiconductor space. Consider investing in AMD for long-term growth potential.

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Read more at Nasdaq: Got $100? 1 Artificial Intelligence (AI) Semiconductor Stock to Buy Hand Over Fist Right Now (Hint: It’s Not Nvidia)