While it seems that Nvidia (NASDAQ: NVDA) is in charge of the semiconductor industry, other players like Advanced Micro Devices (NASDAQ: AMD) secure a significant slice of the microchip profits pie.
Looking at the past year alone, AMD stock has surged by over 100% and 25.73% since 2024 started, posting impressive numbers followed by solid technical and fundamental indicators.
Since the markets closed on February 5, this stock has been trading at $174.23, recording a loss of -1.93% and a decrease of -1.05% over the past five trading sessions.
Picks for you
AMD’s performance is strong, ranking higher than 97% of stocks and more robust than 98% within its industry. Trading near its 52-week peak, within a range of $140.15 to $184.92, AMD’s liquidity remains solid with notable recent volume increases.
With the projected annual growth of over 15% for the AI industry, Advanced Micro Devices looks set to profit from a rapid expansion over the following years.
An incentive to bring the fight to Nvidia
AMD aims to challenge Nvidia’s market dominance by unveiling the MI300X, an AI-centric chip. This strategic move positions AMD as a significant contender in AI-focused stocks, particularly with Nvidia facing sales backlog issues.
The MI300X, designed for generative AI technologies, is projected to generate approximately $2 billion in sales within the next year and surpasses Nvidia’s leading H100 in memory speed.
Reports suggest potential interest from major players like Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) in AMD’s MI300X.
Wall Street’s forecast for AMD stock
Buoyed by its recent robust performance and enticing innovations from AMD, analysts at TipRanks have bestowed upon this stock a ‘strong buy’ rating. They have set a price target of $194.16, suggesting an 11.44% upside from the current level.
Of 34 examiners, 29 advised to ‘buy,’ 5 to ‘hold,’ and notably, none opted to ‘sell.’
Analysts from TradingView advise an overall ‘buy’ rating based on 46 ratings. Of these, 29 recommended a ‘strong buy,’ 6 advised a ‘buy,’ 10 opted for ‘hold,’ and only one for ‘sell.’
The price target is $189.38, with an upside of 8.69% from the current price.
As the AI race is heating up, new players emerge looking to upset the power balance and dethrone industry leaders. While now it might seem like a far-fetched idea, there is a potential candidate for the leadership position, and its name is AMD.
Buy stocks now with Interactive Brokers – the most advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
