2024-06-18 14:30:21 ET
Summary
- Advanced Micro Devices, Inc. remains a compelling alternative AI investment alongside Nvidia.
- Recent cooling off in share price prompts a potential (tentative) upgrade ahead of a return to accelerated growth, despite the valuation remaining very high, posing near-term downside risk.
- In the bullish case of a complete recovery from the downturn and continued AI growth, revenue could rise by 50% (or more) over time.
- Such growth would realistically imply AMD would grow into its current valuation, but the historically high stock valuation suggests it might nevertheless result in an upside.
Investment Thesis
Advanced Micro Devices, Inc. ( AMD ) remains one of the most compelling alternative investments for AI chips besides Nvidia ( NVDA ). However, what has prevented a bullish rating on the stock has been its very high valuation, which rivals that of Nvidia despite only delivering a fraction of its growth....
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AMD: Upgrading Ahead Of Accelerated Growth