AMD shares ended yesterday's trading session with an increase of 9.06% to $192.53 per share, the dynamics continued after the close of trading, which together allowed the company's capitalization to exceed $300 billion for the first time in history. This can serve as an example of the ability of the artificial intelligence boom to bring benefit not only NVIDIA, which is considered the market leader in specialized accelerators.
Representatives of Citigroup yesterday highlighted the securities of AMD, NVIDIA and Broadcom as preferred investment targets, which could also contribute to the growth of stock prices of the listed companies. Supply volumes of semiconductor components, according to analysts, fell by 19% last year – the most since 2001. According to experts, revenue in the semiconductor industry will grow by at least 11% this year, although contract manufacturing and Intel's activities in particular will show slightly worse dynamics.
The negative impact of the correction of inventory in the server segment, according to Citigroup analysts, will exhaust itself in the current half of the year, and this will have a positive effect on the business of Intel and AMD. The PC market will return to seasonal patterns in the current quarter. If we return to the discussion of the dynamics of AMD shares, they have more than doubled in price since their October lows. At the same time, their market value is almost 50 times higher than the projected specific income per share, which is noticeably higher than the indicators inherent in the market leader NVIDIA, whose multiplier does not exceed 32. All this makes it difficult for further serious growth in AMD stock quotes.
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