AMD’s Next Big Growth Story That Investors May Be Overlooking

Summary:

  • So far the AI growth story has centered around data centers, with AMD being perceived as a peripheral winner in the shadow of Nvidia.
  • In fact, following AMD’s ‘Advancing AI’ event where AMD demonstrated new chips, the stock fell by 4% as the market remains wary of the company’s ability to seriously challenge Nvidia.
  • However, as the AI revolution evolves from data centers to edge device computing, AMD finally has an opportunity to come out of Nvidia’s shadow.
  • We discuss AMD’s growth opportunities in the context of AI PC market trends and growth rate projections, as well as the company’s competitive positioning to capitalize on these market dynamics.
  • AMD stock still remains attractively valued with a ‘buy’ rating.

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David Becker

So far the AI growth story around Advanced Micro Devices (NASDAQ:AMD) has centered around its ability to catch up to Nvidia (NVDA) in the data center server GPU space. In fact, following AMD’s ‘Advancing AI’ event recently where


Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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