2024-05-16 07:43:48 ET
Analysts at Wolfe Research just replaced Nvidia Corp (NASDAQ: NVDA) with Advanced Micro Devices Inc (NASDAQ: AMD) on their list of top stocks for 2024.
Why is AMD a better pick than Nvidia stock?
The “tactical shift”, the investment firm told clients in a research note today, is based on “the relative move in stock prices YTD”.
AMD stock is down more than 20% versus its year-to-date high while is up close to 100% at writing.
Wolfe replaced Nvidia stock also because they no longer expect Jensen Huang to deliver an exceptional beat in Q1 on May 22nd.
Consensus is for the semiconductor behemoth to earn $5.17 a share in its first quarter versus 88 cents per share only a year ago. Earlier this week, China asked its tech companies to buy less of Nvidia chips as Invezz reported here .
What else could benefit AMD stock in 2024?
Analysts at the investment firm now favour AMD stock also because it has resolved its memory issues.
They expect the MI300 accelerato r of Advanced Micro Devices to hit $2.0 billion in revenue run rate by the end of 2024 and remain positive on “upward AI revenue guidance revisions through 2H24 as demand visibility improves”.
Expected recovery in server/client CPUs in the back half of this year will also serve as a meaningful catalyst for , as per Wolfe Research.
Watch here: https://www.youtube.com/embed/Z5MttbengFk?feature=oembedThe bullish call on the $260 billion giant based out of Santa Clara, California arrives shortly after it came in ahead of Street estimates for its first financial quarter and issued in-line guidance for the future.
The post Wolfe analysts now favour AMD stock over Nvidia: here's why appeared first on Invezz