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Summary
- AMD has been underperforming but is poised for a rally, supported by favorable Q3 trends and reaching a multi-year support level.
- Q3 earnings showed significant YoY growth, especially in the Data Center segment, despite some weaknesses in Gaming and Embedded segments.
- NVIDIA’s recent issues and AMD’s specialization in AI inference, particularly with Meta, make AMD a compelling buy.
- AMD’s valuation is attractive, trading below 1 forward PEG, and technical analysis indicates a potential bullish reversal at a strong support level.
Thesis Summary
Advanced Micro Devices, Inc. (NASDAQ:AMD) has been underperforming the chip sector, but I believe this will soon end. We have seen some encouraging trends in Q3, and I think there’s going to be even more. James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.
The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.
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