tl;dr
On Wednesday, AMD will host its long-awaited event focusing on artificial intelligence and formally launch its MI300 data center GPU, placing it deeper in competition with Nvidia. Wedbush Securities is expecting the event to focus on several areas, including performance. Analyst Matt Bryson, who ...
On Wednesday, AMD will host its long-awaited event focusing on artificial intelligence and formally launch its MI300 data center GPU, placing it deeper in competition with Nvidia. Wedbush Securities is expecting the event to focus on several areas, including performance.
Analyst Matt Bryson, who has an outperform rating and $130 price target on AMD, said he expects the Dr. Lisa Su-led company to get "more granular" around performance and highlight advantages over Nvidia's H100 offering, including greater memory and bandwidth and how it impacts real world performance.
"We'd note this latter point would very much fit one of the tenets of our positive thesis on DRAM as not only do higher memory specifications lift overall demand, but newer product ramps (DDR5 and HBM3) built on advanced nodes require increased capital (process steps) pulling sidelined capacity naturally back on-line while not significantly impacting bit output (in part because ECC is integrated into newer technologies)," Bryson wrote in an investor note.
Bryson said AMD may also give initial details for its EPYC architecture and how it integrates with its AI roadmap. Also expected to be a focus of the event are partnerships, with Microsoft likely to have a presence. Microsoft has already said it will integrate MI300 into its Azure cloud.
Bryson also said he expects AMD to give some information on how AI will be incorporated into edge devices, particularly PCs, where AMD has a significant presence via its CPUs. In October, AMD said it expects the MI300 to generate more than $2B in sales in 2024. AMD shares fell 0.5% in premarket trading on Tuesday.
More about Advanced Micro Devices Inc
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company in Santa Clara, California, specializing in the development of computer processors and related technologies. With a market cap of $191.19 billion, AMD has shown consistent growth, with a current stock price of $107.64. The stock has a positive 0.11% change, indicating stability in the market sentiment. The company's RSI of 13.7 suggests that the stock may be oversold, potentially indicating a buying opportunity. However, the stock's 0.0094 beta suggests low volatility. AMD's revenue of $22.11 billion and a net income margin of 3.5% demonstrate strong financial performance. The company's P/E ratio of 0.042 reflects a favorable valuation. In light of these metrics, the stock is currently at a support level, but investors should be aware of potential risks associated with market volatility and uncertainties in the semiconductor industry.
More about NVIDIA Corporation
NVIDIA Corporation is a prominent player in the manufacturing industry, particularly in the semiconductors and related devices sector. With a market capitalization of over $112 billion, the company has shown resilience in the market. The stock has been trading at $641.23, with a small increase of 0.16, indicating a relatively stable performance. The company's price-to-earnings ratio of 12.74 suggests that the stock is reasonably valued. However, the current price-to-sales ratio of 7.6 may raise some concerns about the stock's valuation. Additionally, the stock's beta of 2.055 indicates higher volatility compared to the market. Market sentiment towards NVIDIA Corporation appears positive, with a bullish trend in the stock performance. However, it's important to consider potential risks and uncertainties, as past market behavior is not always a reliable indicator of future performance.
More about Microsoft Corporation
Microsoft Corporation is a leading technology company with a market capitalization of $2.78 trillion. The stock is currently trading at $403.31, with a 10.34% increase in the last quarter and a 29.35% increase over the last year. The Relative Strength Index (RSI) is at 36.22, indicating a neutral sentiment, and the stock is currently trading above its 50-day and 200-day moving averages. The company is a key player in the services-prepackaged software industry and is one of the largest software makers by revenue. However, there are potential risks and uncertainties associated with the stock, and past market behavior may not be a reliable indicator of future performance.
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