From Nasdaq: 2025-02-10 08:45:00

Semiconductor stocks like Nvidia, Taiwan Semiconductor, and Broadcom have surged 80% in the past year, outperforming the S&P 500. However, Advanced Micro Devices (AMD) has seen a 36% drop in share prices.

AMD’s fourth-quarter earnings report shows potential in the AI realm, despite mixed results. AMD’s revenue increased by 24% in 2024, with significant growth in the data center business.

AMD’s data center business saw a 94% sales increase in 2024, driven by the release of MI300X accelerators. Partnerships with companies like Microsoft and Meta Platforms indicate a positive outlook for AMD.

Despite recent challenges, AMD stock is trading at a low forward P/E multiple of 24. The company’s growth in the data center business and AI market potential make it an attractive investment opportunity.

Investors are advised to consider AMD’s potential for growth and disruption in the semiconductor market. Expert analysts recommend taking advantage of the current dip in AMD stock for long-term gains.



Read more at Nasdaq: 1 Artificial Intelligence (AI) Chip Stock to Buy on the Dip Right Now (Hint: It’s Not Nvidia)