Why Advanced Micro Devices (AMD) Could Outperform the “Magnificent Seven” Tech Stocks

Title: AMD Outperforms the “Magnificent Seven” Tech Stocks, Poised for AI Market Dominance

Last year, Bank of America analyst Michael Hartnett coined the term “Magnificent Seven” to describe the most influential tech stocks, including Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, Amazon, and Tesla. However, one stock has been outperforming five of these giants – Advanced Micro Devices (AMD) on the NASDAQ.

AMD has recorded an impressive 152% gain over the past year, driven by its expanding presence in the AI market. With estimates suggesting that AMD’s stock could surpass $400 over the next two fiscal years, it is emerging as a strong contender against the Magnificent Seven.

The AI market is projected to reach nearly $2 trillion by 2030, presenting significant growth opportunities for companies like AMD. While Nvidia currently dominates the AI GPU market, AMD’s new MI300X AI GPU has already attracted major clients like Microsoft and Meta Platforms.

In addition to GPUs, AMD is focusing on AI-powered PCs, capitalizing on the projected increase in AI-enabled PC shipments. With a market cap of $335 billion, AMD still has room for growth compared to the trillion-dollar market caps of the Magnificent Seven. However, its recent performance and potential in AI suggest that it could eventually rival these tech giants.

Despite transitioning from CPUs to GPUs, AMD’s recent quarterly earnings reflect positive growth, with revenue increasing in both its data center and client segments. EPS estimates indicate that the stock could nearly double over the next two fiscal years, reaching a share price of $410.

Investors looking for promising opportunities in the tech sector should consider AMD as a top pick for potential growth. With its strong performance, significant presence in the AI market, and projected earnings growth, AMD is positioned to be a key player in the tech industry in the coming years.