AMD: Generational Buying Opportunity

Summary:

• AMD has been underperforming but is poised for a rally, supported by favorable Q3 trends and reaching a multi-year support level.
• Q3 earnings showed significant YoY growth, especially in the Data Center segment, despite some weaknesses in Gaming and Embedded segments.
• NVIDIA’s recent issues and AMD’s specialization in AI inference, particularly with Meta, make AMD a compelling buy.
• AMD’s valuation is attractive, trading below 1 forward PEG, and technical analysis indicates a potential bullish reversal at a strong support level.

Thesis Summary

Advanced Micro Devices, Inc. (NASDAQ:AMD) has been underperforming the chip sector, but I believe this will soon end.

We have seen some encouraging trends in Q3, and I think there’s going to be even more to get

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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