2024-03-28 13:56:00 ET
Summary
- Advanced Micro Devices, Inc. is often overlooked and not given enough credit for being great AI investment play.
- AMD's MI300 chips are not cutting-edge compared to Nvidia's H100s, yet have a chance to gain market among small enterprises and governments.
- At a first glance, AMD trading at a blended P/E of 62.5x might seem expensive, but the expected growth should well justify the valuation.
- While many risks remain, if AMD's data center execution is flawless, the company may potentially reward shareholders with up to 33% annual returns.
As a person who enjoyed playing video games during growing up, Advanced Micro Devices, Inc. ( AMD ) has always been a company close to my heart, powering my personal computer.
Today, times are different. I no longer look at the company only through the lens of how well their CPU or GPU is compared to others on the market. Instead, I analyze what market share does the company have, how aggressive is their product development, and whether the company is trading at a reasonable valuation in terms of the forward expected growth....
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AMD: Near All-Time-High, Yet The Stock Might Be A Bargain