AMD: Inventory Does Not Lie

Summary:

  • I keep rating Advanced Micro Devices, Inc. as a hold due to inventory concerns.
  • With its current inventory buildup, AMD’s growth outlook and valuation multiples have come into question.
  • Competition pressure from Nvidia heightens the concerns.
  • Nvidia chips demonstrate far superior pricing power and no inventory issues at all.

Computer support engineer installing processor. Microprocessor with clearly visible silicon core and cache chip. Installation of computer processor in the socket

Mykola Pokhodzhay

AMD stock: hold rating reiterated due to inventory concerns

I last wrote on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a holding rating back in April 2024 (see the next chart below). My primary concerns


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