David Becker
- Advanced Micro Devices is overvalued, but its strong performance in other areas and presence in a high-growth sector mitigate the poor valuation.
- AMD is expanding its operations in the global PC market, original equipment manufacturing partnerships, gaming, and commercial markets.
- In 2024, AMD plans to release Zen 4 core architecture, Zen 5 cores, and the Radeon RX 7600 XT GPU, among other advancements.
- My analyst rating for the firm is a Hold because I believe other AI companies deserve a larger allocation.
Advanced Micro Devices (NASDAQ:AMD) is significantly overvalued, in my opinion, even when considering the P/E ratio without non-recurring items, which paints a more realistic picture of the firm at a ratio of almost 100 compared to over 1,100. However, because the company is excelling in many other areas and is in a high-growth sector with a significant market share, the poor valuation doesn’t detract too much. There are better AI investments out there, in my opinion, but AMD is worth a Hold.
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