A New Dawn for AMD Amidst AI’s Growth
Nvidia (NASDAQ:NVDA) has emerged as a leading force in the AI sector, often overshadowing competitors such as Advanced Micro Devices (NASDAQ:AMD). However, recent insights suggest AMD may have a crucial opportunity ahead.
According to a prominent investor known as Nexus Research, AMD could be on the brink of a significant breakthrough. The investor, who ranks among the top 3% of all stock professionals on TipRanks, believes that as AI technology shifts from data centers to everyday devices, AMD’s time to shine may finally arrive.
Nexus Research points out that while data centers have been essential for AI’s growth, the landscape is changing. AI applications are increasingly being integrated into smartphones and laptops. New products like Apple Intelligence and Microsoft’s AI PCs suggest that consumers might soon seek hardware upgrades.
This transition emphasizes the crucial role of AI accelerators in personal devices. An industry report cited by Nexus Research forecasts that the market share of AI PCs will jump from 20% in 2024 to over 60% by 2028.
Nexus argues, “If this projection holds true, with demand for high-performance AI PCs surpassing that for lower-performance options, it bodes well for AMD.” The investor also notes that AMD’s Ryzen AI 300 and Ryzen AI PRO 300 series lead in Trillions of Operations Per Second (TOPS) compared to rivals like Intel and Qualcomm.
Despite these positive trends, AMD’s stock price has not yet reflected its potential. Nexus Research highlights that the company’s Forward Price-to-Earnings Growth ratio remains the lowest among major players in AI.
Convinced that “AMD stock still remains attractively valued,” Nexus Research has given AMD shares a Buy rating. (To view Nexus Research’s performance, click here)
Wall Street analysts echo this sentiment, with AMD receiving 25 Buy and 6 Hold ratings, earning a consensus Strong Buy status. The average price target for the stock over the next 12 months is set at $188.96, suggesting a possible increase of around 21% within the year. (See AMD stock forecast)
For those seeking investment ideas in stocks with favorable valuations, explore TipRanks’ Best Stocks to Buy, which collects various equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended for informational purposes only. Always conduct your own analysis before investing.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
