AMD stock has struggled despite market gains, but positive potential makes it a good buy.

From Nasdaq: 2024-12-25 08:15:00

In 2024, the S&P 500 and Nasdaq Composite saw gains of 24% and 30%, respectively, with AI stocks, particularly semiconductor companies, leading the charge.

Despite the market’s success, Advanced Micro Devices (AMD) has struggled, with shares down 19% compared to Nvidia’s 172% return.

AMD reported an 18% revenue increase in the third quarter, with growth in data center and client segments offsetting declines in gaming and embedded sectors.

AMD’s data center business is growing at a pace comparable to Nvidia’s, suggesting long-term potential to challenge Nvidia’s market dominance.

AMD’s PEG ratio of 0.31 and forward P/E ratio in line with the S&P 500 indicate the stock may be undervalued, presenting a buying opportunity for investors.

Analysts recommend AMD as one of the 10 best stocks to buy right now, highlighting its potential for growth and value in the market.

With new GPU releases planned and partnerships with major tech companies, AMD has the potential to challenge Nvidia’s dominance in the AI market over the long term.



Read more at Nasdaq: Should You Buy the Dip in AMD Stock?