AMD Could Become the Next Hot AI Stock, but Should You Buy It Right Now?
Nvidia's (NASDAQ: NVDA) dominance of the market for data center graphics processing units (GPUs) has supercharged the stock in 2023. Shares of the semiconductor giant have nearly tripled so far this year, which seems justified given how artificial intelligence (AI)-fueled demand is going to drive tremendous growth in the company's revenue and earnings.
Nvidia's rival Advanced Micro Devices (NASDAQ: AMD), on the other hand, has also clocked impressive gains of 76% this year. However, AMD's gains have been driven largely by the broader rally in semiconductor stocks rather than the company's financial performance. AMD has struggled on account of its reliance on the personal computer (PC) market, and it has been late to the AI market where Nvidia has been the dominant force with a market share of 95% in GPUs used for machine learning.
However, there is room for more than one player in the massive market for AI GPUs, which is why it is too early to count AMD out of this race. The good part is that AMD is already sampling its data center GPUs with customers, and one source believes that they could be good enough to provide customers with an alternative to Nvidia's chips.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 78 Buy predictions and 1 Sell predictions.
With a target price of 176 € there is a slightly positive potential of 19.7% for Advanced Micro Devices Inc. compared to the current price of 147.04 €.
