AMD Stock Set To Build On Gains, Outperforms Nvidia In Premarket: What's Going On
Portfolio Pulse from Shanthi Rexaline
AMD's stock is set to build on its recent gains, outperforming Nvidia in premarket trading. The rise follows positive commentary from Citigroup, highlighting an expected global semiconductor sales growth of over 11% due to AI-related demand. AMD, along with Nvidia and Broadcom, were named as preferred companies by Citigroup. AMD's market valuation surpassed $300 billion after a significant rally. Analysts see AMD benefiting from AI demand, with a projected AI revenue run-rate of $4 billion by the end of 2024, potentially reaching over $7 billion in 2025. Despite a higher forward price-earnings multiple compared to Nvidia, AMD's stock gained 2.80% in premarket, while Nvidia rose 1.06%.

March 01, 2024 | 12:48 pm
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NEUTRAL IMPACT
Nvidia's stock also saw premarket gains but faces challenges due to its stretched valuation. However, it remains a preferred name by Citigroup alongside AMD and Broadcom, indicating potential growth driven by AI demand.
Nvidia's short-term stock performance is neutral, influenced by its stretched valuation despite premarket gains and being named a preferred company by Citigroup for AI-related growth.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
AMD's stock is poised for growth, buoyed by Citigroup's positive semiconductor industry outlook and its potential in AI-related sales. The company's valuation has surpassed $300 billion, with expectations of significant AI revenue growth.
AMD's stock is likely to rise in the short term due to positive industry outlook from Citigroup, its surpassing $300 billion in market valuation, and expected growth in AI-related sales.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Broadcom, Inc. is mentioned as one of Citigroup's preferred names in the semiconductor industry, indicating a positive outlook for the company, especially in the context of AI-related demand.
Broadcom's inclusion as a preferred name by Citigroup suggests a positive short-term outlook, particularly in AI-related sectors, which could drive its stock price up.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70