Bank of America Securities warned recently that Advanced Micro Devices Inc. (NASDAQ: AMD), could have a difficult time gaining market share by 2025.
It seems that Wall Street’s experts are not the only ones who disagree with the public.
Over half of analysts covering AMD rate the stock as “buy”. They expect that it will rise by at least 20% in 2025.
The chipmaker also receives interest from many billionaires.
AMD Stock is Attracting Massive Institutional Interest
Advanced Micro Devices is a favorite of a few billionaire hedge funds.
Included are:
- Coatue Management headed by Philippe Laffont
- D.E. Shaw & Co, led by David Shaw
- Citadel lead by Ken Griffin
- Viking Global is led by Andreas Halvorsen
These funds collectively own over 32 million shares in the company.
This is on top of the 130 and 149 millions for BlackRock’s and Vanguard’s index funds.
A massive institutional investment in AMD’s stock indicates that it is likely headed in the right direction. You don’t attract veterans by pure chance.
AMD’s chips are powering the world’s fastest supercomputer
Analysts on Wall Street and the billionaires mentioned above are all positive about Advanced Micro Devices, as they believe it will benefit from artificial intelligence.
It has developed a series of chips called “Instinct”, which are designed to train AI. However, they may not be as sophisticated as the products made by Nvidia.
Other benefits of AMD chips include affordability and reduced electric consumption.
Instinct’s benefits account for half of the top 10 highest performing supercomputers on the planet, whereas Nvidia Grace Hopper A100 and H100 are only used by three.
AMD does not pay dividends at the moment.
AMD vs Nvidia – who is more expensive?
The shares of Advanced Micro Devices, on the other hand, are valued at a much higher level.
The AI-mania is well represented by these stocks, which are priced at 25 times earnings forward and 8 times sales.
Comparatively, Nvidia currently sells its products at 31 and 29 times the price, respectively.
The chipmaker might not grow as fast as NVDA, but the valuation of its stock more than compensates for this expected difference.
James Fish, Piper Sandler’s analyst, says that AMD shares are a great way to continue to gain in the data centre space.
The AI chip company reported that its sales of data centres doubled during its third quarter in October.
AMD’s total revenue was $6.82 Billion at that time, well above the $6.71 Billion experts predicted.
The post Billionaires Love this Nvidia Alternative for 2025 might be updated as new information becomes available
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