AMD Stock Rides AI Hype Train But Growth Concerns Loom Compared to Nvidia
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AMD stock has risen sharply recently amid AI excitement, but growth expectations are lower than for Nvidia and valuation looks stretched.
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AMD trades at 50x earnings, making it the 3rd most expensive semiconductor stock, while Nvidia is cheaper at 36x.
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AMD's 2024 earnings estimates have declined 16% recently amid uncertain AI chip demand. Nvidia estimates are surging.
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AMD faces uncertainty around selling its powerful AI chip to China without a license.
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AMD's consensus rating is lower than Nvidia's, suggesting analysts see less upside potential even though shares trade 3% above average price target.