AMD: A Better Investment Than Nvidia

Summary:

  • Advanced Micro Devices, Inc.’s MI300 accelerator is driving explosive data center sales growth, narrowing the gap with Nvidia and promising significant profit surges in the coming quarters.
  • AMD’s data center sales grew 115% YoY in 2Q24, with the MI300 accelerator and EPYC server CPUs as key growth catalysts.
  • AMD is projected to grow profits 50% faster than Nvidia next year, making it a potentially better value investment at a lower profit multiple.
  • The ongoing scaling of MI300 accelerators positions AMD for substantial sales and operating income growth, potentially making it a strong outperformer.

AMD headquarters in Santa Clara, California, USA

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We have all witnessed with awe the meteoric rise of Nvidia Corporation (NVDA) which was well-positioned in the data center GPU sector just when ChatGPT and other AI language models took off and required big investments in new


Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD 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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