AMD: This Is Dead Money

Bohdan Kucheriavyi
9.19K Followers
(8min)

Summary

  • Despite strong demand for AI chips, AMD's stock underperformed in 2024 due to rising competition and macro risks.
  • AMD remains undervalued, but it's unlikely that its share will be able to aggressively rebound to its all-time high levels in the foreseeable future.
  • Increased competition from Nvidia and hyperscalers, along with macro risks limit AMD's upside potential.

AMD headquarters in Santa Clara, California, USA

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Despite the explosive demand for generative AI chips, AMD's (NASDAQ:AMD) stock failed to gain momentum and was underperforming for most of 2024. While there’s a possibility that in 2025 the performance will be much better, considering that the company

This article was written by

9.19K Followers
I'm a Ukraine-based seasoned investor, who firsthand experienced what’s it like to live in an environment full of systemic geopolitical shocks when the war came to my home country. Despite this, I managed to build an all-weather portfolio that has been able to thrive in volatile markets. My goal is to help investors find event-driven geopolitical ideas that can generate strong returns during periods of economic and political uncertainty.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, INTC, META, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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