From Nasdaq:

In 2023, artificial intelligence (AI) investing was big, with mega-cap companies like Apple, Microsoft, and Nvidia leading the charge. Advanced Micro Devices (AMD) is poised to dominate in 2024 as Nvidia’s top rival. AMD recently launched their AI chips, positioning the company to make big strides in the data center AI market.

AMD’s latest AI chips, MI300X, have impressive use cases, including partnerships with industry giants like Microsoft and Meta. AMD’s forecast for data center GPU revenue is $2 billion for 2024, but CEO Lisa Su believes the addressable market for data center AI accelerators will reach $400 billion by 2027. This represents a massive growth opportunity for the company.

Following the release of the MI300X, AMD stock saw a 123% increase in 2023. Analysts believe there is potential for another 45% upside for AMD stock in 2024, with a price target of $200. Investors should consider the long-term potential of AI and the growth opportunities available to AMD, making it a strong contender in the AI market.

Investors looking for alternatives to Nvidia or hedges to other AI plays in their portfolio should take a closer look at AMD. The company has a unique opportunity to capitalize on unprecedented demand in the data center space and could be a formidable leader in the AI industry. 2024 could be a massive year for AMD, paving the way for long-term growth in data center AI.

Before investing in Advanced Micro Devices, investors should weigh the potential for high returns in the coming years. The Motley Fool has identified what they believe are the 10 best stocks to buy now, and while Advanced Micro Devices isn’t on that list, there is potential for monster returns in the AI industry. Investors should consider the growth potential and strategic position of AMD before making investment decisions.



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