#2 - Advanced Micro Devices (NASDAQ:AMD)
Advanced Micro Devices (NASDAQ: AMD) is the 1A to Nvidia's leadership position in this super cycle for computer chips. Trading at 76x forward earnings, you might question its inclusion on this list. However, AMD seems to be in the best position to take at least some market share from Nvidia.
As companies race to build their AI infrastructure, the lack of competition in the AI chip space is becoming pronounced. Customers are looking for alternatives to Nvidia, and that's what AMD brings to the table. In the fourth quarter of 2023, AMD released its MI100 AI chips. The company gave an initial forecast for $2 billion in annual sales. But on the company's recent earnings call, CEO Lisa Su raised that guidance to $3.5 billion and some analysts believe that is a conservative estimate.
One potential roadblock is the company's cautious guidance for its CPU chips. However, that's being more than offset by sales of GPU chips, particularly the M100 chips. And AMD is projected to post a 58% increase in earnings in the next 12 months.
About Advanced Micro Devices
Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.
Read More - Current Price
- $138.35
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 29 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $192.79 (39.4% Upside)
