Brian Belski Advanced Micro Devices AMD-Q WATCH Nov 08, 2024

Growth has been stolen by GPU market due to changing customer demands. Will have to change business plan. Will take time to determine if able to compete in data center market. Believes share price is over valued. 

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.

It reports Tuesday. In the wake of DeepSeek, AMD's cheaper than NVDA's GPU suddenly looked more attractive thatn NVDA's chips.

Powerful competitor to INTC, but has struggled against NVDA because of their clunky software. Results yesterday disappointed. Well positioned, valuation not as stratospheric as NVDA's. Semis are under pressure, and a lot of people want part of the AI pie.

Technically, looks challenged. Down ~57% from highs back in March 2024. Below 200-day MA, which is trending lower. Instead, buy NVDA on its momentum and stronger sentiment.

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.

No. He would limit his exposure to any semis, given Trump's tariffs and embargo on China.

A year ago, everyone thought that AMD was the next best competitor to NVDA. Lost second place to AVGO. Production issues, as so earnings disappointed in February. Coming back, production for GPUs back in place. They'll come back.

NVDA may be the better company, but AMD has more upside. Is volatile, though. When this rallies, perhaps next year, he will divest. Expects this to rise $20-30.