Advanced Micro Devices (AMD) is not lagging behind in the artificial intelligence chip stock race, with the recent surge in technology stock rallies. Despite this, the shares have not responded as anticipated, even in the midst of new product launches and partnerships.
On March 8, AMD stock experienced significant volatility, with a near 9% peak intraday move. However, it closed at $207.39, down 1.9% from the previous session.
Analysts at Zacks attribute this volatility to the growth outlook, noting that AMD shares are trading at 9x next year’s sales forecast of $31 billion, while Nvidia stands at 18x.
Analyst Kevin Cook sees potential for AMD to recapture its recent record highs, citing the opportunity to get in while Micron Technology Inc. (MU) is experiencing growth. Micron soared 14% after beating Wall Street estimates, fueled by AI-related opportunities.
With investor faith in the technology rally still high, the question remains: can AMD compete with rivals like Nvidia, fulfill earnings forecasts, and recapture its recent highs?
Investors contemplating AMD stock may see a potential return of 27% based on Thursday night’s closing price. The industry buzz around AI and semiconductor growth certainly presents a compelling case for considering AMD as a worthy contender in the current market landscape.
Frequently Asked Questions (FAQs) Related to the Above News
Why has AMD stock experienced volatility recently?
AMD stock has experienced volatility due to growth outlook concerns and comparison to its competitors like Nvidia.
How does AMD's current valuation compare to Nvidia?
AMD shares are trading at 9x next year's sales forecast of $31 billion, while Nvidia stands at 18x.
What potential does AMD have to recapture its recent highs?
Analysts see potential for AMD to recapture its recent record highs, especially with opportunities in the AI and semiconductor growth sector.
Should investors consider buying AMD stock at its current price?
Investors contemplating AMD stock may see a potential return of 27% based on Thursday night's closing price, making it a compelling option in the current market landscape.
How has Micron Technology's success impacted AMD?
Micron Technology's growth and success have had a positive impact on AMD, showcasing the opportunities in the AI-related market.
Will AMD be able to compete with Nvidia in the AI chip stock race?
With investor faith in the technology rally still high, AMD has the potential to compete with rivals like Nvidia, fulfill earnings forecasts, and recapture its recent highs.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
