Better Artificial Intelligence (AI) Stock: AMD vs. Broadcom
Share prices of Advanced Micro Devices (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO) soared impressively in the past year on investor anticipation that both chipmakers will take advantage of the booming market for artificial intelligence (AI) chips.
Broadcom stock is up 95% in the past year while AMD is up 85%. As a result, both stocks trade at rich valuations compared to historical levels. But if you have to choose one of these two semiconductor stocks to make the most of the proliferation of AI, which one should you buy right now? Let's take a closer look and see if an answer emerges.
AMD should benefit from AI adoption in multiple ways. For instance, the company's data center business will get a massive boost this year thanks to the growing demand for its AI accelerators. Last year, AMD's data center business produced $6.5 billion in revenue, an increase of just 7% over 2022. The chipmaker will likely deliver much stronger growth in this segment in 2024. That's because it anticipates its AI graphics processing units (GPU) will generate at least $3.5 billion in revenue this year.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 109 Buy predictions and 3 Sell predictions.
With a target price of 521 € there is a positive potential of 26.18% for Advanced Micro Devices Inc. compared to the current price of 412.9 €.
