AMD's Stock Is Trading Near Its 52-Week Low. Is Now the Time to Buy?

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]