by Euro347
To the victor go the spoils and AMD beat Intel, so now its time to reap the rewards of being the biggest in their space. I think Intel will be sold and parts of their business bought out by various companies and the Fab business separated from the chip side of things. Leaving AMD as the go to company for microchips as they are miles ahead.
Look at your work or home computer, would it be able to run a next gen AI app or AI software in the next year or so?
There has been some concern this week with Micron and the PC business but i think the market is overlooking the fact that there is a massive upgrade cycle coming for AI personal computers. Think about all the outdated PC’s that are currently out there. That’s thousands of companies and corporations, Universities/colleges/schools, data centers and personal home computers that are not optimized for AI and the AI apps that will come down the pipeline next year. The addressable market is massive, this isn’t limited to the US but think Europe, Asia, South America all looking to have an AI enabled PC in their office or home. You cant have the AI software development without having AI enabled PC’s. Apple discovered this with their AI phones. You need upgrades on CPU’s, Upgraded GPU’s, Upgraded RAM and hard drives/storage.
Next lets talk about custom chip designs. The market went wild when Broadcom brought this up. No one realizes that AMD has been working on this for a while. They also make AI accelerators that directly compete with everyone else in performance. Their website has a list of their products this isnt something new they are jumping into.
The total addressable market is massive.
https://finance.yahoo.com/news/amds-dr-lisa-su-predicts-172450644.html
AMD keeps beating earnings expectations consistently. Guidance keeps going up. This stock is recession proof.
Average PT is $180 for most analyst, the lowest is $145 and we are well below that.
NOTE: This is not financial advice. Please conduct your own due diligence.