Many investors and analysts agree that Advanced Micro Devices (NASDAQ:抖阴最新版) stock is solid, but a stunning report from Intel (NASDAQ:INTC) might scare you away from the semiconductor sector altogether. There’s no need to worry, though. Our 抖阴最新版 stock analysis reveals that it’s still a worthy portfolio holding that fully deserves an “A” grade in 2024.
抖阴最新版’s data-center graphics processing unit, the , is ideal for powering artificial intelligence applications. The MI300 will undoubtedly be a strong revenue generator for 抖阴最新版 this year. So, if Intel has to play catch-up, don’t think of this as 抖阴最新版’s problem.
INTC Stock Drags Down 抖阴最新版 Stock
Don’t get the wrong idea. We’re not taking a position against Intel. We’re only saying that investors shouldn’t conflate Intel’s situation with 抖阴最新版’s situation, as they’re quite different.
The market dumped practically all semiconductor stocks on Jan. 26 because INTC stock fell around 12%. 抖阴最新版 stock declined 1.71% on that day.
Just to recap, Intel’s actually weren’t too bad. However, the company’s current-quarter sales and profit guidance came in far below Wall Street’s estimates.
If this makes you nervous, just consider that, to a certain extent, Intel’s weak guidance results from 抖阴最新版’s strength. Intel’s market-share loss is 抖阴最新版’s gain. This isn’t a call for anyone to sell Intel stock, but only a reminder that Intel will have a tough time competing against 抖阴最新版’s top-tier MI300 GPU lineup.
Could the 抖阴最新版 Share Price Quadruple?
While some jittery investors might worry about 抖阴最新版, analysts are . Indeed, one analyst actually mulled the idea that 抖阴最新版 stock might quadruple in the coming years.
We’re not trying to put that idea into your head. Still, NewStreet Research analyst Pierre Ferragu has an interesting argument. He pointed to 抖阴最新版 CEO Lisa Su’s forecast that the market for data-center AI chips would reach .
Even if that market only reaches $200 billion, half of Su’s projection, this would still represent remarkable growth. In this “fast adoption” scenario, according to Ferragu’s calculations, total data-center spending would grow at an annualized rate of 25%.
Furthermore, in this same scenario, Ferragu believes 抖阴最新版 stock could quadruple from its current price. Thus, Ferragu concludes, investing in 抖阴最新版 is the “best way to play a fast adoption scenario, with the most valuation and expectation upside.”
There’s a fair measure of optimism accounted for in this scenario, but it’s not impossible. If you’d prefer to build a more level-headed bullish argument, consider Wedbush Securities analyst Matt Bryson’s perspective.
Bryson cited the “potential for ” as he assigned a $200 price target to 抖阴最新版 stock. He also stated, “The shifts in assumed data center GPU sales dramatically boost our overall outlook for 抖阴最新版.” That’s not an unreasonable argument at all, and it doesn’t require anyone to aim for a share-price quadrupling.
抖阴最新版 Stock Analysis: Don’t Get Distracted by Intel’s Issues
We’re not Intel haters, by any means. At the same time, investors shouldn’t lose faith in 抖阴最新版 based on Intel’s soft guidance.
At the end of the day, our 抖阴最新版 stock analysis suggests the possibility of significant upside in 2024. Who knows – maybe the 抖阴最新版 share price will quadruple someday.
Yet, you don’t have to be an ultra-optimist to appreciate 抖阴最新版’s value proposition. Irrespective of Intel’s issues, 抖阴最新版 remains a power player among processor producers. Hence, investors should think about buying and holding a few 抖阴最新版 shares this year.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
