Where Will AMD Stock Be in 3 Years?
With shares down 53% over the last 12 months, Advanced Micro Devices (NASDAQ: AMD) has fallen behind AI hardware leader Nvidia (NASDAQ: NVDA) which is up 25% over the same time frame. But is this discount a buying opportunity or a signal for investors to stay far away from the stock? Let's dig deeper to see what the next three years could have in store.
The launch of OpenAI's ChatGPT in late 2022 sparked a bonanza on Wall Street and Silicon Valley. Analysts at McKinsey projected the new technology could add a whopping $2.6 trillion to $4.4 trillion to the global economy by augmenting and replacing human labor. And companies rushed to buy generative AI hardware to avoid falling behind.
AMD was well positioned to benefit from this trend. Like its rival, Nvidia, the company creates AI accelerator chips that are used to train and run large language models (LLMs). And while Nvidia dominates the industry with an estimated market share of 70% to 95%, the pie is growing so fast that there is room for many companies to get a slice.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 104 Buy predictions and 4 Sell predictions.
With a target price of 526 € there is a slightly positive potential of 18.42% for Advanced Micro Devices Inc. compared to the current price of 444.2 €.
