AMD: Don’t Be Fooled By The Naysayers

Summary:

• AMD stock has struggled to regain momentum as investors are increasingly concerned about its AI growth inflection.
• Broadcom and Marvell unveiled robust AI revenue outlook recently, corroborating their positions as significant challengers against AMD.
• Nvidia’s Blackwell AI chips are expected to scale and move into volume production and delivery through 2025, heightening AMD’s execution risks.
• AMD management needs to provide a convincing answer to the market’s concerns with a solid FY2025 AI revenue outlook.
• I argue why, while these concerns are valid, the market isn’t foolish, as it has already baked in significant pessimism.

AMD Investors Are Getting More Worried

Advanced Micro Devices, Inc. (NASDAQ:AMD) investors have failed to get a respite over the past month, as the stock of the leading semiconductor company has continued to fall. It has reached lows last

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, AAPL, AMZN, TSM, AVGO 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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