AMD Stock Recent News

Advanced Micro Devices (NASDAQ:AMD) is having a shockingly bad year.

Despite the semiconductor industry being a major beneficiary of the ongoing artificial intelligence (AI) boom, with Nvidia (NASDAQ: NVDA) adding more than $2 trillion to its market capitalization and Broadcom (NASDAQ: AVGO) seeing its valuation rocket above $1 trillion in 2024, not all chipmaker stocks enjoyed the upside.

The technology sector, and more specifically, the semiconductor industry, is a foundational element of modern economies and a hotbed of innovation and profit potential. As demand continues to soar from sectors like electric vehicles (EV) and artificial intelligence (AI), identifying the key players within this transformative terrain becomes a vital consideration for investors looking for long-term growth and substantial returns.

In today's video, I discuss Advanced Micro Devices (AMD 2.55%) and my thoughts for the upcoming year. To learn more, check out the short video, consider subscribing, and click the special offer link below.

In this video, I will cover the recent updates regarding Advanced Micro Devices (AMD 2.55%). Watch the short video to learn more, consider subscribing, and click the special offer link below.

AMD shares have fallen 23.37% since October, mainly due to concerns about competition with Nvidia's Blackwell chips, but AMD can still compete effectively. Breakthroughs from DeepSeek V3 model significantly reduce AI training costs, positioning AMD GPUs as an even more cost-effective alternative to Nvidia's, enhancing AMD's market position. AMD's forward P/E ratio is undervalued, and aligning its PEG ratio with the sector median could lift its valuation by approximately 130.49%.

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The past two years have favored one sector of the stock market overall: the technology sector, with a specific amount of attention going into the semiconductor industry. Just as in any popularity cycle in the market, there was one darling name that investors chose to keep their sights on: NVIDIA Co. NASDAQ: NVDA.

AMD's shares are under pressure due to AI competition, but the company is gaining market share in server CPUs. AMD's valuation is attractive, trading below its 15-year average P/E, with strong EPS growth expected in the coming years. AMD's AI GPUs cater to cost-sensitive markets, offering a competitive edge against Nvidia's high-end products.

Reasoning models like OpenAI's "o1" demand exponentially more inference compute, which benefits AMD due to its superior memory bandwidth and latency capabilities. AI agents could further amplify inference demand, making AMD's hardware crucial for handling these complex, iterative tasks. AMD's modular chiplet design offers significant advantages in managing the increased inference loads, positioning it as a strong investment in the evolving AI landscape.