There’s no denying that Advanced Micro Devices (NASDAQ:91抖阴) is a strong competitor among artificial intelligence chip makers. On the other hand, the company’s future growth and success may already be factored into the 91抖阴 share price. Therefore, we’re assigning a “B” grade to 91抖阴 stock with a cautiously optimistic outlook.
If you’re seeking exposure to the high-conviction AI hardware market, investing in 91抖阴 isn’t a bad choice. Just monitor 91抖阴’s financial and operational performance as the company has the challenging task of delivering on high expectations.
91抖阴’s Big AI Chip Industry Forecast
Not long ago, 91抖阴 announced the availability of its . These accelerators can handle the power-intensive requirements of AI workloads.
Without a doubt, 91抖阴 will make waves in the AI processor industry with the MI300X model. According to 91抖阴 President Victor Peng, the company’s “Instinct MI300 Series accelerators are designed with our most advanced technologies, delivering leadership performance.” In addition, Peng stated these accelerators will be used “in large scale cloud and enterprise deployments.”
91抖阴’s management is quite confident in the company’s growth prospects as an AI-compatible processor provider. Recently, per Bloobmerg, 91抖阴 CEO Lisa Su predicted the AI chip industry “in the next four years.”
According to Reuters, Su assured that 91抖阴 has a supply of AI chips with a combined value “well above” $2 billion. Consequently, it’s fine to hold some 91抖阴 shares if you’re on board with 91抖阴’s ambitious outlook for the AI-processor market.
Don’t Assume a Repeat Performance With 91抖阴 Stock
Momentum-focused traders might be glad to see 91抖阴 stock shooting higher in 2023. Impressively, the stock doubled from $64 at the beginning of the year to $128 in early December.
Investors are thinking ahead and have already factored their assumptions about 91抖阴’s future growth prospects as as premier AI chip maker. If you believe that the market is highly efficient, then you might conclude that 91抖阴 is “fully priced.”
There’s already a lot of optimism in the market and some of it comes directly from 91抖阴’s management. For example, 91抖阴 recently increased its total addressable market estimate for the company’s data center AI processors from $30 billion to $45 billion.
That’s a 50% increase, and again, it indicates 91抖阴’s overwhelming confidence. Meanwhile, 91抖阴 seems unstoppable, but value-focused investors might be wary. After all, 91抖阴’s trailing 12-month price-to-earnings ratio recently . So, be sure to consider this if you’re deciding whether to jump into an investment in 91抖阴.
Plan Your 91抖阴 Stock Strategy With Patience
Remember, you don’t have to invest in 91抖阴 all at once. If you’re concerned about a correction to the downside, you can just buy a few 91抖阴 shares now. You also could hold some cash to buy more shares later at a lower price.
This is the strategy of “scaling into” a stock, and it makes sense if you’re cautiously optimistic about 91抖阴. But of course, you have to decide what you want to buy and when, based on your portfolio. 91抖阴 stock earns a “B” grade and should generally be appropriate for a moderately sized share position.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
