Tech behemoth Advanced Micro Devices (AMD) has seen a recent 27% decrease in their stock values from their March peak. The deep fall has stirred concern among investors about the company’s future.
The slump has largely been chalked up to an industry-wide chip shortage. In reaction, AMD has committed to escalating production efforts, and industry insiders are predicting a leveling-off of values by year-end.
Despite the downturn, AMD still holds a solid place in the technological market. In fact, they have recently announced the impending release of new products, which could help to balance the current drop in stock value.
Stock markets, known for their volatility, require potential investors to keep track of AMD’s stock performance.
Industry analyst, Frank Lee, recommends AMD stocks as a part of a diversified investment portfolio.
AMD’s resilience amid stock downturn
Lee has voiced that the adjusted market expectations of AMD’s MI300 series accelerators’ income for 2024 and 2025 makes now a good time for investment.
He also emphasizes the rising demand for AMD’s MI300 series in booming tech markets as a contributing factor to the updated approximations. Lee advises investing before the sales hike becomes public knowledge.
Originally, revenue forecasts foretold $6-$8 billion for this year, and an impressive $10-$12 billion in 2025 for the MI300 series. But with increased demand and market expansion, these have been updated to $8-$10 billion for this year and an incredible $13-$15 billion for 2025.
Should market predictions hold true, AMD will be in a commanding position to exceed expectations and acquire even greater market dominance.
Lee states that AMD has a good grasp of supply and demand balance, which could enable it to surpass its revenue forecast of >USD3.5 billion for its AI GPU in 2024.
Competing with Nvidia and its GB200 platform, Lee remains optimistic about the future of the MI300 series. AMD might not be in a direct face-off against Nvidia’s GB200, leaving their strategy somewhat undisclosed.
AMD’s distinctive approach has piqued interest within the tech industry, while their competitor Nvidia continues to push its GB200.
Both AMD and Nvidia continue to dominate in their respective specialties, but which will come out on top remains to be seen. The market remains ripe for stiff competition and eager spectators.
