Opinions
Darren Sissons
Advanced Micro Devices
AMD-Q
BUY
Aug 06, 2024
Stock price when the opinion was issued
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It used to be 2nd place to Intel. After mobile devices fell out of favour, AMD moved into AI, which is why shares have rallied. As for Nvidia: will AMD catch up? Outside AI-related semis, the semis sector is in pain. He isn't chasing this, especially with the weak CAD--and he feels the same about Nvidia. You could take profits.
Advanced Micro Devices, Inc engages in the provision of semiconductor businesses. It operates through the following segments: Computing & Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs and development services. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles. The company was founded by W. J. Sanders III on May 1, 1969 and is headquartered in Santa Clara, CA. Social media mentions are up 46% in the past 24h.
Though decent value, it can fall further. It's second place in a very competitive business. NVDA has been sucking all the air out of the room. He won't touch semis unless the sector is really beaten up and broken. That said, the CEO is very smart and they have some good products. Problem is, there's so much passive money in the market, especially chips, and that excess needs to be burned off.
Makes great chips. It's software, not hardware. Hasn't been able to deliver the ecosystem to handle AI workloads effectively or reliably. He'd be much more bullish if it could get its act together on this.
Not gained market share. Not even close to NVDA. Success with hyperscalers, but not with the average customer. Has taken data centre market share.
Based on three previous dips in Dec. 2018, Q1-2020 and 2022, a two-day trend is not a sell-off. In 2022, NVDA corrected 70%. There's a lot going on geopolitically, namely the US election, so wait and see. The problem with NVDA is it's heavily traded--everybody loves. AMD is safer with less volatility. For a trade, buy NVDA on a dip, but he's sitting on both names now, waiting.