AMD Stock Analysis (December 2023)

Published first at: https://www.3minutebreakdowns.com Should you buy AMD stock? Ticker: $AMD AMD has launched a new chip that it hopes can compete with market leader Nvidia. The MI300X has been called the most advanced AI accelerator on the market and this news has helped AMD stock to a new 52-week high. That gives the company a market cap of 228 billion dollars. Revenue over the last 12 months is 22 billion with 5.4 billion of adjusted EBITDA, but net income is only 208 million. That means AMD stock is valued at 10 times revenue, 41 times EBITDA and over 1000 times earnings. That may seem expensive but AMD’s new chip allows it to participate in the generative AI boom, a market which AMD thinks can hit $400 billion dollars by 2027. And the MI300X chip seems to be the real deal. According to SemiAnalysis, the GPU has better latency, memory and performance than Nvidia’s H100. And the Financial Times reported that Open AI, the startup behind ChatGPT, will be incorporating AMD’s new chips into its software. #stocks #amdstock #investing #stockstowatch