Advanced Micro DevicesNASDAQ: AMD

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Advanced Micro Devices, Inc. has reported results that are not very thrilling, especially since the company is close to its highest values ever. While AMD is strong in CPUs and becoming more competitive in the datacenter market, other areas appear to be struggling. We wonder if AMD can achieve enough growth in the datacenter sector to support its current valuation before we see a slowdown in margins and revenue growth.

Advanced Micro Devices (NASDAQ: AMD) shares fell around 13% in the last two trading days after the company released its Q3 earnings report. In this report, AMD gave a forecast for the next quarter that was a bit lower than what analysts had expected. They predict Q4 revenues will be between $7.2 billion and $7.8 billion, which is slightly below the average estimate of $7.55 billion.

Investors holding Nvidia shares could gain advantages by including its main competitor in their investment portfolio.

Advanced Micro Devices (NASDAQ: AMD) has just announced its financial results for the third quarter of the year, which showed a mix of positive and negative outcomes that have split opinions among investors.

The chip designer has discovered a specific area of focus in AI inference.

AMD's stock dropped as investors became more careful about its potential growth in AI. The company's future predictions fell short of Wall Street's expectations, indicating a decrease in market excitement. Nevertheless, AMD's adjusted PEG ratio is over 40% lower than the average in the tech sector, showing that the market is quite negative about its prospects.

Advanced Micro Devices, Inc. reported an 18% rise in revenue for Q3 2024, mainly due to a 122% increase in its Data Center segment, which now makes up more than half of its total revenue. The company has also increased its AI revenue prediction for 2024 from $2 billion to $5 billion and shared a product plan that extends through 2026. Although Nvidia is currently ahead, AMD's emphasis on AI data centers presents significant growth opportunities at better valuation rates, and ongoing demand for AI could lead to a rise in AMD's stock price.

This year, the semiconductor industry has seen a big divide between those who are doing well and those who are not. Statistics indicate a clear imbalance between the successful companies and those struggling.