AMD: Lagging AI Growth Shouldn't Last
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Advanced Micro Devices, Inc. (AMD) is experiencing a surge in Data Center revenue due to AI demand, although its overall growth lags behind Nvidia. While the Gaming and Embedded segments are struggling, Data Center sales are expected to drive future growth. AMD stock trades at 21x '26 EPS targets, with potential upside if new GPUs like the Mi350 capture market share.
November 13, 2024 | 1:15 am
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AMD's Data Center revenue is increasing due to AI demand, but overall growth is slower than Nvidia's. The Gaming and Embedded segments are underperforming, but Data Center sales are expected to drive future growth. AMD stock is trading at 21x '26 EPS targets, with potential upside if new GPUs like the Mi350 gain market share.
AMD's Data Center segment is benefiting from AI demand, which is a positive indicator for future growth. Although the Gaming and Embedded segments are struggling, the focus on Data Center sales suggests a strategic shift that could enhance revenue. The stock's current valuation at 21x '26 EPS targets indicates potential for price appreciation, especially if new products like the Mi350 succeed in capturing market share.
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