AMD is aggressively challenging Nvidia in AI market, with revenue growth and positive analyst outlook.

From Nasdaq: 2024-09-10 10:35:53

Tech giants like Nvidia, Broadcom, and AMD are in a fierce competition for AI dominance, with AMD making strategic moves to challenge Nvidia. Despite being down 39% from its peak, AMD stock is still up 30.2% over the past year, trading at 40.87 times forward earnings and with revenue exceeding expectations in Q2.

AMD’s revenue rose 9% annually to $5.8 billion in Q2, with strong growth in data center and client segment revenue. The company raised its AI chip sales guidance, expecting revenues to hit $6.7 billion. Analysts anticipate a bottom-line growth to $0.71 per share in Q3.

AMD unveiled the MI325X AI accelerator to challenge Nvidia, and recently announced the acquisition of Finnish AI startup Silo AI for $665 million. This follows AMD’s $4.9 billion acquisition of ZT Systems and hiring of former Nvidia AI executive Keith Strier, as the company gears up for an all-out AI battle.

Analysts are bullish on AMD stock, with a consensus “Strong Buy” rating and an average price target of $192.88, suggesting a potential upside of nearly 40%. The Street-high price target of $265 indicates AMD stock could rally as much as 91.8% from current levels.



Read more at Nasdaq: As Its AI Rivalry With Nvidia Gets Personal, Is AMD Stock a Buy?