AMD: I Was Wrong

Bohdan Kucheriavyi9.87K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryAMD's stock surged ~150% since April, driven by a major OpenAI infrastructure deal and robust Q3 earnings exceeding expectations.Despite recent momentum, AMD’s upside appears limited as its shares now trade near a revised fair value of $219.78 per share.Intensifying competition from Nvidia, hyperscalers, and Chinese entrants threatens AMD’s ability to expand its AI accelerator market share.Nvidia remains the preferred AI trade, given its dominant position and expected superior revenue growth over AMD in the next two years. Robert Way/iStock Editorial via Getty Images In late 2023, I closed my long position in AMD (AMD)(AMD:CA) and used the proceeds to double down on Nvidia (NVDA). It was aThis article was written byBohdan Kucheriavyi9.87K FollowersFollowI'm a Ukraine-based seasoned investor, who firsthand experienced what’s it like to live in an environment full of systemic geopolitical shocks when the war came to my home country. Despite this, I managed to build an all-weather portfolio that has been able to thrive in volatile markets. My goal is to help investors find event-driven geopolitical ideas that can generate strong returns during periods of economic and political uncertainty.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You