AMD: Recent Correction Provides New Opportunity
Summary
- AMD’s recent earnings result showed strong potential for its Data Center business and, specifically, its AI chips.
- The company projected $5 billion in AI chip revenue for 2024, which is up from $4.5 billion in earlier projections.
- AMD is in a good spot to deliver over $10 billion in AI chip revenue in 2025 and will likely be a main competitor for Nvidia in this segment.
- AMD’s forward P/E ratio for fiscal ending Dec 2026 is close to 20 compared to Nvidia’s P/E ratio of 30, making AMD significantly cheaper and with strong tailwinds.
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