Both AMD and Micron have strong AI chip demand, but Micron edges out as better investment.

From Nasdaq: 2024-07-28 08:15:00

Tech stocks like AMD and Micron have benefitted greatly from the rise of AI in the market. AMD’s share price surged from $93.12 to $227.30, driven by AI chip demand. Micron saw a rise from $61.75 to $157.54. Both companies showcase strong AI-related revenue growth, with Micron’s gross margin hitting 27%.

AMD’s AI chip demand led to a huge surge in revenue, but other divisions like gaming saw declines. Micron’s strong AI-related chip demand drove a significant rise in gross margin, hitting 27% in Q3. AMD forecasts $5.7 billion in Q2 sales, while Micron expects $7.6 billion in Q4.

With Micron’s strong year-over-year sales growth and better valuation compared to AMD, it edges out as the better AI stock investment. Analysts rate both stocks as “buy.” The Motley Fool recommends 10 other stocks over AMD, indicating potential for sizable returns in the future.



Read more at Nasdaq: Better Artificial Intelligence Stock: AMD vs. Micron Technology