An Upgrade Supercycle Is Coming To AMD

Summary:

  • AMD has lagged behind the broader semiconductor index this year despite robust uptake for its Instinct accelerators in the heat of the AI arms race.
  • The client segment is also benefitting from an early recovery in the PC market, propped by AMD’s inherently elevated exposure to the more affluent commercial end-market.
  • Paired with an emerging recovery in higher-margin embedded sales, reinforced by longer-term adjacent demand from AI momentum, the stock continues to underappreciate an impending upgrade supercycle.

AMD Headquarters

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AMD (NASDAQ:AMD) has been a laggard compared to the broader Philadelphia Semiconductor Index (SOX) this year, despite consistent progress in ramping up its AI accelerators to support the industry’s transition to accelerated computing. The stock has largely


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