Broadcom's Performance and Strategy - Broadcom generated a strong free cash flow of $5.5 billion in Q4, up from $4.7 billion in the prior year, and raised its dividend by 11% to $0.59 per share [1] - Broadcom's share price reached a 52-week high of $251.88 on Dec 16, causing its P/E ratio to surge [2] - Broadcom's AI-related revenue rose 220% in fiscal 2024 to $12.2 billion compared to 2023's $3.8 billion, contributing to record full-year revenue of $51.6 billion, a 44% increase [12] - Broadcom's acquisition of VMware in November 2023 boosted its infrastructure business segment revenue by 196% year over year to $5.8 billion in Q4 [19][20] - Broadcom's CEO described 2024 as a transformative year, driven by AI and the VMware acquisition [9] AMD's Performance and Strategy - AMD anticipates Q4 revenue to rise to $7.5 billion, a double-digit increase over the prior year's $6.2 billion, driven by demand for accelerated computing [5] - AMD's AI demand supercharged its fiscal Q3 sales to a record $6.8 billion, an 18% year-over-year increase [11] - AMD's data center sales reached record revenue of $3.5 billion, a 122% year-over-year increase, due to its semiconductor products boosting AI system efficiency [17] - AMD is expanding its data center business through acquisitions, such as the expected deal to acquire ZT Systems in the first half of 2025 [15] - AMD sees growing demand for accelerated computing to support AI and data-intensive applications like 5G networks, creating a substantial market for its products [8] Industry Overview - The semiconductor industry had a strong 2024 with global sales up 19% year over year, and is forecasted to reach nearly $700 billion in 2025, up from $627 billion in 2024 [16] - The expanding AI market is expected to drive years of additional growth in the semiconductor industry [10] Comparison Between AMD and Broadcom - AMD's better valuation and lower exposure to risk in China (15% of sales) give it an edge over Broadcom, which has approximately one-third of its sales to Chinese customers [3][7] - Broadcom is more vulnerable to U.S. government tariffs and export restrictions on semiconductor products to China [7] - Both companies are seeing strong sales growth due to customer demand for AI-related products, making it a tough choice to pick just one for investment [13][14] - AMD's P/E ratio makes it a better value compared to Broadcom, whose P/E ratio surged after its Q4 results [2]

The Federal Reserve may have cooled this year's market rally on Wednesday, telegraphing a slowdown in its pace of rate cuts. The news sent the major market indexes lower, but most investors are still having a great year. Less than a third of the market's large-cap stocks are trading lower in 2024.Fewer than 6% -- or 50 of the 853 names with market caps north of $10 billion trading on a U.S.-listed exchange -- hit new 52-week lows in Wednesday's markdown. One of the more compelling names on that list has to ...

Despite Nvidia's rise this year and the huge demand for artificial intelligence chips, AMD stock continues to underperform.In this video, I will cover the recent updates affecting Advanced Micro Devices (AMD -0.97%). Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Dec. 17, 2024. The video was published on Dec. 17, 2024. ...

AMD Stock Performance - AMD stock is down 15% year to date and is near its 52-week low despite its long-term potential [1] - AMD trades at more than 110 times its trailing earnings, which is considered worrisome [3] - AMD's revenue growth rate has been modest compared to its peer Nvidia [3] Comparison with Nvidia - Nvidia has a market cap of $3.2 trillion, which is more than 16 times AMD's $200 billion [2] - Nvidia has been a scorching hot buy and is now among the three most valuable companies in the world [2] Growth Prospects - AMD anticipates an acceleration of its growth rate for the fourth quarter with projected sales of around $7.5 billion, a 22% increase from the prior-year period [5] - The company is on track for record revenue in 2024 and is experiencing significant growth in multiple areas of its business [4] AI Chip Market - AMD is aggressively pursuing a piece of the AI chip market and could steal market share from Nvidia [6] - The recently launched MI325X chip is 30% faster than Nvidia's H200, potentially offering strong competition and boosting AMD's top- and bottom-line growth [7] Investment Potential - AMD may be an underrated stock to hold in the new year with its new chip rolling out and anticipated growth acceleration [8] - AMD is trading at a forward price-to-earnings multiple of 25, making it a more comfortable purchase for long-term investors [9] - Given AMD's potential in the AI chip market, it may be one of the better stocks to buy right now as investors appear to be overlooking it [9]

Stock Performance and Valuation - AMD shares surged to new highs at the beginning of 2024 but are down 44% year to date, reaching a high of $227 [1] - The stock trades at 112 times trailing 12-month earnings per share but has a lower forward P/E multiple based on next year's earnings estimates [2] - Analysts expect AMD's earnings to increase by 54% in 2025, reaching $5 11, with the stock currently trading at around $125 or 24 times next year's earnings estimate [9] Revenue and Earnings Growth - AMD's total revenue grew 18% year over year in Q3, up from the previous quarter's 9% increase [3] - Adjusted (non-GAAP) earnings grew 31% year over year in Q3, with full-year consensus estimates expecting 27% revenue growth and 25% earnings growth [5] - Data center chip sales, AMD's largest revenue source, grew 122% year over year to $3 5 billion last quarter [3] Market Position and Demand - AMD and Nvidia share a duopoly in the GPU market, with strong demand for AI training chips fueling growth for both companies [4] - Advanced GPUs sold to data center customers generate above-average margins, contributing to stronger earnings growth [5] - AMD's embedded business is seeing strong demand from aerospace customers like SpaceX, expected to benefit profitability [6] Future Outlook and Potential - AMD raised its full-year revenue guidance for data center GPUs despite a tight supply environment [7] - The company expects to benefit from economies of scale to improve operational efficiency and gross margins [8] - Management has identified a $400 billion addressable market for data center chips, indicating long-term growth potential [11] Stock Price Projection - Strong demand for data center chips could drive the stock back toward the $200 level in 2025 [2] - To reach $200, the stock would need to trade at a forward P/E of 40 on 2025 earnings estimates, which is possible given its current trading multiple [9] - AMD stock could reach $200 within the next year if all segments return to revenue growth [10]

Advanced Micro Devices, Inc. (NASDAQ: AMD ) has seen its stock price decline over 20% in the past six months. Meanwhile, Broadcom ( AVGO ) jumped 20% after earnings and is up 100% in the last year.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. ...

A sign is posted in front of the Advanced Micro Devices (AMD) headquarters on May 10, 2022 in Santa Clara, California.Vultr, a startup that rents out graphics processing units and other cloud infrastructure to businesses, has raised $333 million in a transaction that values the company at $3.5 billion. AMD's venture arm and hedge fund LuminArx Capital Management led the round.Founded in 2014 and known as a low-cost virtual server provider, Vultr offers GPUs from AMD and rival Nvidia, which are in high deman ...

Though multiple semiconductor stocks have been the superstars of 2024, and despite Advanced Micro Devices (NASDAQ: AMD) offering a strong performance in the initial months of the year, it has fallen deep into the red in more recent trading.The dire circumstances have, however, not deterred investors and analysts, and throughout its fall, AMD stock may have been setting up for a significant bull run. Specifically, a prominent investor and technical analyst on X, Jake Wujastyk, believes the semiconductor gian ...

Advanced Micro Devices (NASDAQ: AMD ) has come down to a highly attractive level following the share price pullback since 3Q24 results. Technically speaking, AMD’s chart looks very weak. However, to medium-long term value investors, owning AMD at the current level could be aWith over 14 years of experience as a sellside equity analyst specializing in the HK/China market, I have developed a deep understanding and keen insight into various sectors. For the past eight years, I have been focusing on China’s oil ...

The most recent trading session ended with Advanced Micro Devices (AMD) standing at $125.02, reflecting a -1.32% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.39%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.32%.The chipmaker's stock has dropped by 8.81% in the past month, falling short of the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.6%.Market participants will ...