AMD Poised to Ride AI Wave to Further Growth and Market Share Gains Over Intel
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AMD is well-positioned to benefit from the rapid growth of the AI market, expected to reach $2 trillion by 2030. Its revenues and EPS have been growing exponentially.
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AMD offers a wide range of AI-optimized products for data centers, enterprises, PCs, and embedded devices. Over 90% of AI-enabled PCs use AMD Ryzen CPUs.
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Intel is struggling with declining revenues and lost momentum in AI chips and data centers compared to AMD and Nvidia.
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Based on a DCF valuation model, AMD's fair value target share price is around $185. With continued double-digit growth, the fair value could be significantly higher.
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Risks include high R&D costs and valuation, increased competition from Intel and Nvidia, and uncertainty about the size of the AI market. But AMD's strong AI portfolio makes it a buy.