Investment Highlights
Advanced Micro Devices (AMD) is experiencing significant growth potential, with a forecasted revenue increase from AI data centers expected to grow at a compound annual growth rate (CAGR) of over 80% over three to five years. Currently, AMD’s forward price-to-earnings ratio is 39.7, and its PEG ratio is a low 0.5, indicating it may be undervalued despite appearances.
Micron Technology (MU) is positioned as a leading supplier of high-bandwidth memory (HBM), trading at a forward price-to-earnings ratio of 12.3 and a PEG ratio below 0.7. The company anticipates its total addressable market for HBM to reach $100 billion by 2028, reflecting a CAGR of approximately 40%.
Nvidia (NVDA) continues to dominate the AI infrastructure market, projecting annual AI-related spending to reach $3 trillion to $4 trillion by the decade’s end. Its PEG ratio stands at 0.7. Nvidia’s forthcoming GPU releases, including the advanced Rubin GPUs, are expected to maintain its competitive edge in the AI chip landscape.
