Advanced Micro Devices (NASDAQ: AMD) has not seen the exhilarating growth akin to chip giant Nvidia, but it certainly hasn’t missed the AI boom bus. Shares of the versatile chip specialist, renowned for its PC CPUs, have surged by 141% since the dawn of 2023.
The Call from Edward Jones
Financial services powerhouse Edward Jones has spoken, initiating coverage on AMD with a buy rating and landing the shares in the firm’s exclusive “focus list,” signifying elite status.
Edward Jones has forecasted that AMD is on the cusp of delivering “outsize growth” in the data center infrastructure arena, following a quarter where sales in this segment more than doubled. Not unlike Nvidia’s stellar results, demand continues to soar, and an avenue for potential expansion lies in cross-selling new products in the embedded segment post its 2022 acquisition of Xilinx.
Is AMD’s Current Price Justified?
Boosted by a robust earnings report in late July, AMD is reaping the benefits of Intel’s stumbles, Nvidia’s Blackwell platform delay, and the recent acquisition of ZT System for $4.9 billion, which caters to both manufacturing and design systems for AI infrastructure.
AMD is racing to seize the AI opportunity that lies ahead, bolstered by increasing support on Wall Street. While it will take time for profits to scale upwards, the stock boasts promising upside potential, particularly due to its momentum in the data center sector. In my view, it’s a buy at this point.
Considering an Investment in Advanced Micro Devices?
Before diving into Advanced Micro Devices stock, ponder this:
The Motley Fool Stock Advisor analyst team has unearthed what they believe are the top 10 best stocks for investors to buy now… and Advanced Micro Devices didn’t make the list. The highlighted stocks are poised for monstrous returns in the forthcoming years.
Reflect on the moment Nvidia earned a spot on this list back on April 15, 2005… if you had invested $1,000 following that recommendation, you’d be sitting on $779,735 today!*
Stock Advisor furnishes investors with a user-friendly blueprint for success, offering insights on portfolio management and delivering two new stock picks each month. Since 2002, the Stock Advisor service has yielded returns over four times that of the S&P 500.*
*Stock Advisor returns as of August 12, 2024
Jeremy Bowman holds no position in any of the mentioned stocks. The Motley Fool has positions in and endorses Advanced Micro Devices and Nvidia. The Motley Fool endorses Intel and recommends options including long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool maintains a disclosure policy.