2024-05-03 15:18:12 ET
Summary
- Advanced Micro Devices, Inc. continues to underperform in both stock performance and financial performance, as Nvidia takes the lead in the generative AI race and Intel in the x86 CPU race.
- With the gaming segment still reporting elevated inventory channels and slower IoT/ automotive recovery in the embedded segment, we are uncertain about AMD's intermediate term prospects.
- While the consensus forward estimates remain moderately positive, it appears that its AI chip offerings are likely to remain a far second moving forward, along with Intel.
- With AMD consistently charting lower highs/ lower lows over the past two months, we believe that it may be more prudent to observe its movement/ execution for a little longer, resulting in our Hold rating.
We previously covered Advanced Micro Devices, Inc. ( AMD ) in February 2024, discussing its overly premium growth valuations and inflated stock price, which we concluded offered interested investors a minimal margin of safety....
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AMD: Too Late And Too Little In The AI Game